KKR, GIC to invest in India Grid Trust

Global investment firm Kohlberg Kravis Roberts & Company (KKR) is likely to acquire up to 74 per cent stake in Sterlite Investment Managers Limited as well as purchase a sizeable portion of units in its InvIT India Grid Trust (IndiGrid). Singapore-based sovereign wealth fund GIC is also participating in the multilayered transaction. IndiGrid is raising capital of about Rs 25.6 billion via a preferential issue of equity shares. In this transaction, KKR will subscribe to 42.2 per cent of IndiGrid units via a different affiliate and then purchase 15 per cent from the InvIT’s sponsor, Sterlite Power Grid Ventures Limited. KKR will invest about Rs 10.84 billion while GIC will invest about Rs 9.8 billion in the IndiGrid issue. With this transaction, KKR will eventually hold 36.87 per cent of IndiGrid units. The proposed transaction will also result in KKR becoming a co-sponsor of the IndiGrid InvIT, alongside Sterlite Power Grid Ventures.