Power Grid Corporation of India Ltd (PGCIL) has sold its remaining 26% stake in four associate companies to Power Grid Infrastructure Investment Trust (PGInvIT) for Rs 5.07 billion.
The transfer, completed on December 30, 2024, aligns with share purchase agreements involving PGCIL, IDBI Trusteeship Services Ltd, PUTL (Powergrid Unchahar Transmission Ltd), and the concerned entities.
The four companies and the consideration received from each are:
- Powergrid Kala Amb Transmission Ltd: Rs 430 million
- Powergrid Parli Transmission Ltd: Rs 1,870 million
- Powergrid Warora Transmission Ltd: Rs 1,770 million
- Powergrid Jabalpur Transmission Ltd: Rs 1,000 million
Following the transaction, these companies cease to be PGCIL’s associates and are now wholly owned by PGInvIT.
PGCIL initially sold 74% stakes in these entities, along with Powergrid Vizag Transmission Ltd, to PGInvIT in May 2021, raising Rs 27.36 billion. PGCIL’s residual 26% stake in Vizag Transmission was sold in April 2022 for Rs 3.31 billion.
As a sponsor of PGInvIT, PGCIL retains at least 15% of PGInvIT’s units, with approximately 136.5 million units locked in.
The assets transferred to PGInvIT include transmission lines, substations, and fibre optic infrastructure. The four entities are likely to be renamed to reflect their separation from PGCIL.