India Grid Trust (BSE:540565) entered into a definitive agreement to acquire 49.7% stake in Jhajjar KT Transco Private Limited from Kalpataru Power Transmission Limited (BSE:522287) for an enterprise value of INR 3.1 billion on May 29, 2020. In related transactions, India Grid Trust entered into definitive agreements to acquire remaining 50.3% stake in Jhajjar KT Transco Private Limited from Techno Electric & Engineering Company Limited and Klassik Vinyl Products LLP on May 29, 2020. Consideration is subject to certain adjustments on account of assets and liabilities at the time of closing of the transaction. Transaction will be funded through a combination of debt and internal accruals.

During the FY 2019-20 Jhajjar KT Transco Private Limited has total revenue of INR 390 million and total net worth of INR 1.1 billion. The transaction is also subject to requisite regulatory approvals and compliances. The acquisition, expected to be consummated over next couple of months. As per announcement of September 28, 2020, India Grid Trust acquired 36.46% stake in the sale of first closing sale shares of Jhajjar KT Transco Private Limited after obtaining the requisite regulatory and other approvals and compliance with condition precedents. As a result, India Grid Trust holds 74% stake in Jhajjar KT Transco Private Limited by acquiring stake from other two parties. Transaction is 10th accretive acquisition since listing in 2017.

JM Financial Limited acted as financial advisor and Cyril Amarchand and Mangaldas as legal advisors to IndiGrid for this transaction. Ernst & Young Private Limited, Investment Banking Arm acted as a financial advisor to Kalpataru Power Transmission Limited. Shivanshu Thaplyal of Khaitan & Co. acted as legal advisor to Kalpataru Power Transmission Limited.