JSA advises India Grid Trust in its acquisition of 74% stake in Parbati Koldam Transmission Company Limited from Reliance Infrastructure Limited

India Grid Trust (IndiGrid) has completed the acquisition of 74% shareholding and management control in Parbati Koldam Transmission Company Limited (PKTCL) from Reliance Infrastructure Limited (R-Infra). IndiGrid and R-Infra had signed the share purchase agreement for the transaction in November 2020.

IndiGrid is India’s first listed power sector infrastructure investment trust (InvIT), sponsored by KKR and Sterlite Power Grid Ventures Limited.

The acquisition of PKTCL is in line with the IndiGrid’s investment strategy with a focus to ensure stable distribution to its unitholders by owning assets with long term contracts.

Implied Enterprise Value (for 100% equity shares) of approximately Rs. 900 Crores inclusive of cash and cash reserves and normalised tariff receivables

Infrastructure investment, infrastructure contracting, and sector regulatory aspects of the transaction was led by Partners – Vishnu Sudarsan and Shashank Vikram Singh along with Principal Associate – Kartikeya GS.

The due diligence was led by Senior Associates – Tanvi Trivedi and Divyam Sharma and Associates – Abhishek Sarkar and Vishakha Singh.

Strategic advisory on litigation, contentious regulatory issues and right of way related aspects was led by Partner – Poonam Verma along with Senior Associate – Aparajita Upadhyay and Associate – Sakshi Kapoor.

Real Estate and associated aspects were led by Partners – Upendra Nath Sharma and Bharat Bhushan Sharma along with Senior Associate – Akshay Bhagchandani and Associate – Mohit Aggarwal.

Partner – Vaibhav Choukse advised on the competition law related aspects of the deal along with Associate – Parth Sehan.