India Grid is India’s first listed power sector infrastructure investment trust, sponsored by KKR and Sterlite Power. IndiaGrid was established on October 21, 2016 and is registered with SEBI pursuant to the InvIT Regulations.
IndiaGrid was established to own and operate power transmission and renewable energy assets in India. it owns 13 operating projects, consisting of 38 EHV overhead power transmission lines, comprising seven 765 kV transmission lines, twenty-nine 400 kV transmission lines and two132 kV transmission lines, with a total circuit length of approximately 7,570 ckms and eleven substations with approximately 13,550 MVA of transformation capacity, across 17 states and 1 union territory, in India. IndiGrid has assets under management worth of approximately ₹ 200,000 million as on March 31, 2021. IndiGrid Investment Managers Limited (formerly known as Sterlite Investment Managers Limited), is the investment manager of the InvIT and is majority owned by Electron IM Pte. Ltd., an affiliate of the KKR Sponsor. IndiaGrid has consistently been given a corporate credit rating of ‘CCA AAA/Stable’ by CRISIL, ‘IND AAA’/Stable by India Ratings and ‘ICRA AAA (Stable)’ by ICRA.
India Grid Trust is Government or Private?
India Grid Trust is a private trust created or sponsored by KKR and Sterlite Power Transmission Limited. Both these entities are private entity hence it is not a government trust or company.
Issue Purpose
at least 75% of Funds will be used For the purpose of onward lending to the Portfolio Assets, financing and for repayment/prepayment of interest and principal of existing borrowings of the Trust and the rest will be used For General Corporate Purposes which shall not exceed 25% of the amount raised and allotted in the Issue.
Issue Size
Rs.100 Crores (“Base Issue Size”) with an option to retain oversubscription of upto Rs.900 Crores aggregating upto to Rs.1,000 Crores
Issue Structure
Nature of Security
NCDs shall be secured by a (i) first and pari passu charge by way of hypothecation on (a) all the right, title, interest, benefits, claims and demands whatsoever of the Issuer in, to and under all the loans and advances extended by the Issuer to the HoldCo and to the SPVs and all its subsidiaries and associate companies (direct or indirect), present and future (collectively, the “Issuer Loans”), (b) the right, title and interest and benefits of the Issuer in, to and under all the financing agreements, deeds, documents and agreements or any other instruments (both present and future) which are now executed or may hereafter be executed by the Issuer with respect to the Issuer Loans, (c) all accounts of the Issuer, including but not limited to the escrow accounts but excluding the Excluded Accounts; and (d) all receivables; and (ii) first and pari passu pledge over at least 99% of the fully paid up equity share capital of JTCL, MTL, RTCL, PKTCL, NRSS, JKTPL and IGL1 and at least 73% of the paid up equity share capital of PTCL. The Issuer may provide higher pledge also as an additional security with intimation to the Security Trustee. It is clarified that by virtue of pledge creation of IGL1, IndiGrid lenders would not have any direct recourse or rights against the subsidiaries of IGL1.
Other Issue Details
Some extra Benefits for Unit Holders of IndiaGrid
For all categories of investors who subscribe for NCDs in any Series in the Tranche I Issue and who are the Unitholders of the Trust as on Deemed Date of Allotment, an additional incentive will be paid at the rate of 0.05% p.a. for Series I, 0.10% p.a. for Series II, 0.15% p.a. for Series III and IV, & 0.20% p.a. for Series V and VI NCDs , provided such investor continues to hold the NCDs of Tranche I Issue on the Record date at the end of first Year. The amount of Additional Incentive will be determined on the amount of NCDs allotted to unitholders on deemed date of allotment or amount of NCDs held on Record Date at the end of first year, whichever is lower, and will be paid only one time at the end of first Year for all Series along with interest payment. For the sake of clarity, for Series IV & VI (interest payout quarterly) the payment of Additional incentive will be done at the end of the last quarter of the first year along with interest payment.
How to apply for IndiaGrid NCD 2021
If you are planning to apply for this NCD issue then you can apply here through online and offline both modes. if you are planning to apply through online mode then you can apply here through your net banking option just like you apply for your Equity IPOs, you can also apply here through using the BSE Direct Platform. Now if you are planning to apply through offline mode then you have to fill the physical application form and have to submit it to your broker.
Suggestion
For complete information do refer to the NCD prospectus before investing (prospectus is shared on the telegram channel)
