NABARD ups stake in SIDBI to 10%; India Grid buys three power assets
Photo Credit: Thinkstock

The National Bank for Agriculture and Rural Development (NABARD) has increased its stake in Small Industries Development Bank of India (SIDBI) to 10% by buying a 7% stake from public-sector lender IDBI Bank Ltd for Rs 900 crore, the Mint reported, citing two people aware of the development.

IDBI Bank has been struggling with high level of bad loans and has been offloading non-core assets as part of a turnaround plan. It had sold a 10% stake in SIDBI in two tranches in September, its stock- market disclosures show. As of 3 October, IDBI Bank held a 6.22% stake in SIDBI, according to the latter’s website.

NABARD’s investment is the largest made by the apex rural financial institution so far, the report said.

Meanwhile, India Grid Trust, an infrastructure investment trust (InvIT) sponsored by power transmission asset operator Sterlite Power Grid Ventures Ltd, has agreed to acquire three power transmission assets from its sponsor for Rs 1,490 crore (nearly $228 million), according to a stock-exchange disclosure.

India Grid CEO Pratik Agarwal said these three acquisitions reaffirm the company’s commitment to growing the platform through accretive transactions of operational power transmission assets, which have long-term cash flows and low counterparty risks.

India Grid owns 10 revenue-generating assets, comprising eight transmission lines and two substations. It had mobilised Rs 2,250 crore through a public issue in May. Sterlite Power was the second firm to float an InvIT offering.

Sterlite Power is a subsidiary of Sterlite Power Transmission, which was de-merged from Sterlite Technologies Ltd with the latter retaining its telecom business in the listed entity. These entities are owned by billionaire Anil Agarwal-led Vedanta Group.

Leave Your Comment(s)