IndiGrid’s board approves acquisition of Virescent Renewable Energy Trust

The board of directors of India Grid Trust (IndiGrid) has approved the acquisition of 100 per cent units of Virescent Renewable Energy Trust (VRET) along with its investment manager and project manager, at an enterprise valuation of Rs 40 billion.

IndiGrid’s acquisition is subject to closing adjustments. The transaction followed a competitive bidding process, and is subject to requisite regulatory and unitholder approvals. An accretive addition, the acquisition will be funded through a combination of internal accruals, debt, and further capital raise and is expected to add around Rs 2 billion annually to IndiGrid’s net distributable cash flow. Notably, VRET is India’s first and only renewable energy infrastructure investment trust comprising a portfolio of 16 operational solar projects through 14 special purpose vehicles across 7 states and with a cumulative capacity of 538 MWp.