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IndiGrid: Transitioning into India’s Fir...

Agarwalla, Sobhesh...

Case

IndiGrid: Transitioning into India’s First Independent Power Transmission InvIT (B)

Agarwalla, Sobhesh Kumar; Pandey, Ajay

IIMA-FA0552(B) | Published June 1, 2020 | 14 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Learning Objectives

This case is a sequel to the “IndiGrid: Creating India’s First Power Transmission InvIT (A)” case. It describes the deal that would replace the trust’s original sponsor, Sterlite Power, with a new set of KKR-led financial investors. It provides an opportunity to discuss the consequences of this change on the new investment manager’s outlook for management and future acquisitions. The new investment manager, freed from the limiting interest of the original sponsor, had to search for investment opportunities from the perspective of incoming financial investors, which included the new sponsor. It also provides an opportunity to evaluate the trade-offs in investing in operational utility-scale renewable energy assets by the IndiGrid, which had so far only acquired operational transmission assets in its portfolio.

The learning objectives of Case B are: a) to determine the reason for change in control/sponsorship voluntarily sought by the original Sponsor, Sterlite Power, in favour of KKR, a financial firm, and b) to evaluate the option of renewable energy asset acquisition for the growth of IndiGrid.