India Grid Trust (IndiGrid), an infrastructure investment trust (InvIT), will fully acquire two solar assets operated by FRV Solar Holdings located in Andhra Pradesh.
IndiGrid will acquire both assets – FRV Andhra Pradesh Solar Farm-I Pvt Ltd and FRV India Solar Park II-Pvt Ltd – for an enterprise value of Rs 660 crore (nearly $90 million at current exchange rates).
The acquisition comes three weeks after KKR & Co-backed IndiGrid – the country’s only publicly listed InvIT in the power sector – said it would acquire a 74% stake in Parbati Koldam Transmission Co Ltd from Anil Ambani group’s Reliance Infrastructure Ltd.
FRV Andhra Pradesh Solar Farm-I (FRV-I) operates as a subsidiary of Fotowatio Renewable Ventures Servicios España SL, a multinational large-scale solar power plants developer.
FRV-I was set up in 2016 and operates a 50 megawatt (MW) plant in Ananthapuramu Solar Park. The asset entered into a power purchase agreement with Solar Energy Corporation of India Ltd in October that year for a period of 25 years. It reported revenues of Rs 47 crore for the 2019-20 financial year.
FRV India Solar Park II-Pvt Ltd (FRV-II) was set up in July 2016 and operates another 50 MW plant in the Ananthapuramu park. It reported total revenues of Rs 50 crore for the 2019-20 fiscal.
Shares of IndiGrid were trading 0.53% up at Rs 116.95 apiece at the time of writing this report. IndiGrid reported consolidated net sales of Rs 1,272.04 crore for the 2019-20 year, with net profits of Rs 505.72 crore for the same period.
KKR had first invested in IndiGrid last year. At the time, it had agreed to buy 22% of units of the InvIT with an option to purchase 15% more from the original sponsor, Sterlite Grid Power Ventures Pvt. Ltd.