Edelweiss platform Sekura to buy into four of Essel’s power transmission projects
Photo Credit: Shah Junaid/VCCircle

Sekura Energy Ltd, a platform backed by Edelweiss Infrastructure Yield Plus fund, has agreed to acquire a stake in two operating power transmission assets owned by Essel Infraprojects Ltd, the infrastructure arm of the Essel Group.

The two assets are Darbhanga-Motihari Transmission Ltd and NRSS XXXI (B) Transmission Ltd, according to a statement.

Sekura is also set to acquire Warora-Kurnool Transmission Ltd and NRSS XXXVI Transmission Ltd, which are likely to be commissioned in 2019-20. The stake in the two under-construction assets will be acquired post commissioning.

The deal size could not be immediately ascertained.

The transaction is subject to certain customary regulatory, lender approvals and closing conditions, the statement added.

“Essel Group has plans to expand its footprint in the emerging infrastructure sectors like water, railways, municipal solid waste etc,” said Essel Infraprojects chief executive officer and whole time director Rohit Modi. “Asset monetisation is an important aspect of our business strategy to create growth capital.”

Subahoo Chordia, head of Edelweiss Infrastructure Yield Plus, said that the transaction fits well with the fund’s strategy of investing in infrastructure assets which can deliver predictable long-term returns to investors. 

Edelweiss had announced the first close of its infrastructure fund in May this year at Rs 2,000 crore ($297 million then).

The firm plans to raise an additional $668 million (Rs 4,500 crore) over the coming months.

The fund counts global pension funds, insurance companies, endowment funds, banks and certain family offices among its investors.

Earlier, Essel Infraprojects had reportedly shortlisted Edelweiss and three other bidders - Tata Power, CLP India, and Sterlite Power - for its power transmission projects.

Among other large power transmission assets deals, India Grid Trust, an infrastructure investment trust (InvIT) sponsored by power transmission company Sterlite Power Grid Ventures Ltd, had earlier this year acquired a 46% stake in a transmission asset of Kolkata-based Techno Electric & Engineering Company Ltd.

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