Edelweiss arm buys Essel Infra's power transmission assets for Rs6,000 cr
17 October 2018
Edelweiss-backed Sekura Energy Ltd has acquired four power transmission assets from Subhash Chandra-led Essel Infraprojects for Rs6,000 crore. These include two operational lines and two under-construction projects.
The Darbhanga-Motihari Transmission Ltd and NRSS XXXI (B) Transmission Ltd are already operational while Warora-Kurnool Transmission Ltd and NRSS XXXVI Transmission Ltd are expected to be commissioned in FY 2020.
The total enterprise value of the four transmission projects divested to Sekura Energy is Rs6,000 crore, according to Essel Infraprojects.
The acquisition and transfer of the two under-construction assets will be carried out after commissioning of the two.
The transaction is also subject to fulfilment of certain regulatory and lender approvals and closing conditions, a statement from Essel Infra said.
The sale is part of Essel Group’s plan to expand its footprint in the emerging infrastructure sectors such as water, railways, municipal solid waste, according to Essel Infraprojects Ltd CEO and whole time director Rohit Modi.
Modi said EsselGroup will use proceeds from the sale of power transmission assets to create capital for its new ventures.
The company is also looking to divest its renewable portfolio of over 600 MW, half of which is operational, he added.
Greenko, Actis and Tata Power are being considered as possible buyers, according to sources.
Sekura is a unit of Edelweiss Infrastructure Yield Plus fund focussed on investing in India’s power sector. Edelweiss’ EIYP fund is registered with the Securities and Exchange Board of India as a Category I alternative investment fund and is focused on investing in power transmission, renewable power, roads and highways space and other infrastructure segments.
“With this acquisition, Sekura Energy will be one of the leading asset owners and investors in the power sector,” Avinash Rao, CEO of Sekura Energy, said.