IndiGrid to acquire ReNew solar and transmission assets

IndiGrid has signed definitive agreements to acquire two operational infrastructure assets from ReNew Power in separate transactions. The combined enterprise value of the deals stands at approximately Rs 21.75 billion, including net working capital and cash adjustments.

The first acquisition is a 300 MW AC solar power project located in Barmer, Rajasthan. The project—ReNew Solar Aayan Private Limited—was commissioned in March 2024 under SECI Tranche-IX. It operates under a 25-year power purchase agreement (PPA) with Solar Energy Corporation of India (SECI) at a fixed tariff of Rs 2.37 per unit. The project’s proximity to another IndiGrid asset, ReNew Solar Urja Private Limited, is expected to offer operational synergies.

The second asset is Koppal Narendra Transmission Ltd (KNTL), an inter-state transmission system in Karnataka. Commissioned in October 2023, KNTL includes 276 ckm of transmission lines and about 2,500 MVA of transformation capacity. The project is currently held by ReNew Solar Power Pvt Ltd (51 percent) and KNI India (49 percent), the latter being a JV of Norfund and KLP.

IndiGrid will acquire full ownership of both assets, pending regulatory and contractual approvals. The acquisitions are expected to contribute over Rs 1 billion annually to IndiGrid’s net distributable cash flow. The funding will be a mix of equity, internal accruals, and debt. Post-transaction, IndiGrid’s net debt-to-asset under management ratio will be around 62 percent.