Indigrid Infrastructure Trust · NSE:INDIGRID
Indigrid Infrastructure Trust — India Grid Trust (IndiGrid) — Investor Presentation (May 2019)
17 slides from Indigrid Infrastructure Trust's investor presentation, May 2019
Slide 1: Corporate Presentation
Corporate Presentation May 2019 Strictly Private and Confidential
Slide 2: Vision
Vision Deliver INR PPredictable Best in-class INR30,000 300 BNcr redictable Best in-class AUM by D i sDtPrUi bauntdi o n Corporate AUM by2022 2022 Corporate and G rGrow o w t h th Governance Governance To become the most admired yield vehicle in Asia 2
Slide 3: Our Story So Far
Our Story So Far INR 21. 6 DPU1 05 Distributed since IPO 04 InvIT Regulations For additional leverage and reduction of lot size 03 NCD Issue First AAA rated debentures by an InvIT 02 Acquisition of first third party asset PTCL ROFO asset acquisition 01 RTCL, PKTCL,MTL IPO BDTCL & JTL Jun-17 Feb-18 A
Slide 4: Transaction Highlights
Transaction Highlights 1 Raised INR 25.1 bn of Primary Capital through Preferential Issue of which KKR & GIC contributed INR 20.6 bn 2 Signed definitive agreements to acquire INR 115 bn worth transmission assets from Sterlite power 3 KKR to be inducted as a sponsor of IndiGrid alongside Sterlite Pow
Slide 5: Key Advantages for IndiGrid
Key Advantages for IndiGrid • Participation by marquee investors in the preference issue – a testimony to the InvIT platform • Capitalize the platform adequately for the next 2 years for growth via acquisitions till INR 170 Bn • Acquisition of ROFO assets from Sterlite (NTL and OGPTL)1 • Visible pip
Slide 6: Transaction Details
Transaction Details Preferential Issue Details Acquisition of NTL & OGPTL • Issue size: INR 25.1 bn @ INR 83.89 per unit • SPA signed for acquisition of NTL1 & OGPTL1 (INR • New Units: 300 mn • Total Units post issue : 583 mn 50,390 mn) • Anchor Investors: KKR (INR 10,840 mn ), GIC (INR o NTL: INR 3
Slide 7: Deal Structure
Deal Structure Pre Transaction Post Transaction Sponsor Sponsors Public Public Unitholders Unitholders ~21.2% ~78.8% ~15.0% ~22.1% ~62.9% 40% Investment 60% Manager Investment Manager IPA MRP PTCL IPA MRP PTCL N+O FA Year 2018 2018 2017 2018 2018 2019 2019-20 2017 AUM – INR 52 bn AUM – INR 170 bn •
Slide 8: Significant Portfolio Expansion
Significant Portfolio Expansion Pre Transaction Post Transaction1 • 13 lines – 3,361 ckm • 32 lines – 6,600 ckm • 3 sub-stations – 7,000 MVA • 10 sub-stations – 14,995 MVA • 9 States • 16 States Note: 8 1. Includes Portfolio Assets, NTL, OGPTL and Framework Agreement Assets
Slide 9: Key Operational and Financial Parameters
Key Operational and Financial Parameters Pre Transaction Post Transaction1 6 11 No of Assets No of Assets INR 52 bn INR 170 bn AUM AUM 47% ~67% Net Debt / AUM Net Debt / AUM AAA Availability-linked 35 years Credi t Rat i ng Payment mechani sm Term of TSA 2 50 years >99% Inter-State Pool 3 Usef ul l
Slide 10: Transaction Process
Transaction Process Approval from Board of Seeking approval Unit Holders Addition of Sponsor Investment Manager for: • Acquisition of NTL and OGPTL • KKR inducted as Sponsor • Preferential allotment • Change in control of IM on SEBI approval • Acquisition of NTL and OGPTL1 • Addition of KKR as Spons
Slide 11: Key Decisions at the EGM
Key Decisions at the EGM Item No 1: To approve the proposed acquisition of power transmission assets from Sponsor • Acquisition of 100% stake in NTL and OGPTL as per ROFO deed signed on May 5, 2017 • Total Enterprise Value (EV) of INR 50,390 mn subject to adjustments Item No 2: To approve the induct
Slide 12: Return Profile Calculated at INR 100 per unit
Return Profile Calculated at INR 100 per unit IRR 8.6% 10.0% 10.7% 12.0% FY2018-2019 FY2020 FY2020-2021 180 41 160 140 14 10 131 120 13 117 AUM in INR bn 100 42 107 80 60 2 16 40 34 20 0 IPO MRP PTCL NRSS OGPTL GPTL KTL NER Note: 12 AUM as of March 31, 2019; IRR numbers are calculated on IPO issue p
Slide 13: Delivered on DPU Promise
Delivered on DPU Promise Pre Transaction 13 Acquisition of 3rd 12 party & future sponsor projects 11 DPU per unit 10 9 8 7 6 5 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 2 3 4 Current Portfolio ENICL+NRSS+OGPTL KTL+GPTL NER+Goa Post Transaction1 Min. DPU of INR 12.0 for next 10
Slide 14: Anchor Investor – KKR
Anchor Investor – KKR1 Leading Global Investment Firm KKR in India • KKR is a leading global investment firm with over 42 years of • India offers a positive long-term economic experience and a strong track record of performance Favorable outlook given its favourable demographic Long-Term o ~US$195bn
Slide 15: Sterlite Power Transmission Limited
Sterlite Power Sponsor Transmission - Sterlite Power Limited The Sponsor develops transmission assets under the BOOM (Build Own Operate Maintain) in India and BOOT (Build Own Operate Transfer) model in Brazil and has established a strong track record in both the countries Global infrastructure playe
Slide 16: Disclaimer
Disclaimer This presentation is prepared and issued by Sterlite Investment Managers Limited (the “Investment Manager”) on behalf of and in its capacity as the investment manager of India Grid Trust (“IndiGrid”) for general information purposes only without regards to specific objectives, financial s
Slide 17: Thank You
Thank You
India Grid Trust (IndiGrid) — Investor Presentation (May 2019) on 6ix