The India Grid Trust has inked a share purchase agreement for acquisition of 74 percent in Parbati Koldam Transmission Company (PKTCL) from Reliance Infrastructure.
The implied enterprise value for 100 percent equity shares is approximately Rs 9,000 million, inclusive of cash and cash reserves and normalised tariff receivables, subject to adjustments on account of movement in cash, deviation in outstanding debt, tariff receivables, assets, liabilities outstanding as on actual closing date of the transaction per the share purchase agreement agreed between the parties.
IndiGrid will acquire 74 percent shareholding and management control in PKTCL, subject to the terms of share purchase and other definitive agreements and requisite regulatory and other relevant approvals. The paid-up capital of PKTCL is Rs 272.837 crore and networth is of around Rs 440.150 crore in FY19-20.
The acquisition of the power transmission asset is in line with the IndiGrid investment strategy as provided in the Trust Deed with a focus to ensure stable distribution to unit holders by owning assets with long-term contracts.
The governmental, regulatory or any other approvals, as may be required, to be obtained for the aforesaid acquisition. The completion of acquisition will depend upon receipt of relevant approvals and completion of contractual obligations.
PKTCL was incorporated on 2 September 2002. It is a joint venture (JV) between Reliance Infrastructure (74 percent) and the Power Grid Corporation of India (26 percent).
PKTCL has entered into a TSA with PGCIL on 24 December 2013. It operates approximately 458 circuit km of transmission lines constituting inter-state transmission system for evacuation of power from Parbati-II HEP implemented by NHPC and Koldam HEP implemented by NTPC. The asset was fully commissioned in June 2015. During FY19-20, the company had total revenue of around Rs 209 crore.