If I’m not mistaken the sponsor has a lock in period of 3 years and sterlite completed 3 years and so maybe there is nothing notorious or shady here? Also sterlite had issues already(pledging their 15 percent stake last year) so maybe this was a mutual agreement and now a new sponsor could come in? I could be very wrong so please flag this post if I am.
Disc: Interested in investing but I missed it at sub 90 and when the sterlite news came up I began tracking it again hoping I can pick it up.
It was mentioned in yesterday’s concall that the transaction was between two independent shareholders, and Indigrid will not be affected by the deal falling through, nor is it privy to why it fell through.
It was also mentioned that the transaction was supposed to happen at Rs 83 or thereabouts.
Considering recent market prices, maybe it was cancelled from Sterlite Power’s end. Did they find some technicality to wiggle out of the agreement? Hope for some clarity, since if the issue was from KKR’s end, it would be a major red flag.
Sterlite seems to have launched an FPO to sell the bulk of their 16 percent holding in a price band of Rs 97 to 99. Presumably Sterlite prefers to sell at 15% higher price than what they had originally agreed with KKR.
This transaction may cause a short term liquidity overhang in the unit price in next few days
Indigrid q1fy21 concall transcript.pdf (479.2 KB)
Q1 Analyst call transcript for those interested
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It’s a subscription article. Can someone please summarize?
My understanding is:
- KKR doesnt want to become a sponsor because it is increased liability without any economic benefit.
- If KKR were to purchase Sterlite units under new SEBI guidline they may need to do open offer and become sponsor which doesnt work for them.
- WIth increase in price over last 15 odd months, Sterlite sees no reason to sell cheap to KKR.
- Hence while operating business is all fine, the shareholder level disputes could create issues
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I think it got executed on NSE today. Huge volumes around Rs 98.
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Could we know who bought such a large chunk. Obviously this seem to be a pre-agreed deal.
It would be interesting to know the buyer Identity.
With this the Sterlite overhang is atleast over from the invit ownership. Now transfer of 40% from investment manager to kkr remains to be concluded.
Disc. Invested in indigrid
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According to the BSE filings, the purchasers of the Sterlite stake are Danske Investment India, Pragya Equities (seems to be an Enam group entity), Societe Generale, Profitex Shares, Morgan Stanley and the largest purchaser was L&T who bought 25 million units!
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Yes arsh13…saw that. Still couldn’t figure out buyer of about 4.25 million units. Sterlite sold 8.55 million units and all these entities out together bought about 4.3 million units
Hi Fellow Investors
Where can I find a simple bifurcation of quarterly distribution. What are the elements and how to treat them in different income classification in ITR. Can somebody help for last FY 4 quarters.
Thanks in advance.
You should check 26AS which would have details regarding TDS and interest earned for the particular FY. They send Form 16 on email which is often delayed but 26AS is accurate and that’s what matters.
KKR has evinced interest again (post SPGVL’s cancellation of agreement to sell units to KKR at the earlier agreed upon rate - fiasco) to become a sponsor of Indigrid. They have sought shareholders approval in the upcoming board meeting for the same. I feel it is a positive development.
Fellow investors, let me know your thoughts.
Induction Of Esoteric II Pte. Ltd., An Affiliate Of KKR & Co. Inc., (‘Esoteric’) As A Sponsor
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Team any views -For/against investment in Indi Grid at current prices.
I am getting tempted to replace FD exposure with these units considering Distribution certainty for next 7-10 years and management aggressive stance in onboarding new assets.
This is detailed analysis on India Grid investment trust.
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IndiGrid has invested in couple of SOLAR assets from AP based on there latest notification.
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It is proving to be one of the best investment I did over the last one year. Low beta, high yield and now good capital appreciation from 85-90 levels. It has reached my target of 120 implying 10% pre tax yield. I doubt it would go below 9% since I think interest rates have largely bottomed out. Unless quarterly distribution rises steadily from here, it should restrict any more outperformance.
Yet another platform. Success of Indi Grid has attracted others to join the transmission bandwagon.
The article mentions a line about potential conflict of interest with the listed entity. Interesting issue for existing shareholders to query with the company.
Disc : - Not invested.
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Hi - The blogger has not really understood what an INVIT is and why its making losses and how it is paying the investor.
Even something simple as why company was formed in 2016 but was set up in 2018 has not been understood. The SPVs which hold the assets have a longer history but trust was formed recently only for the purpose of listing.
I would request you to delete this link.
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