IndiGrid to acquire 2 projects from FRV Solar for Rs 660 cr

Infrastructure investment trust IndiGrid on Saturday said it has inked an agreement to acquire 100 per cent stake in two projects of FRV Solar Holdings for Rs 660 crore. During 2019-20, FRV I had a total revenue of Rs 47 crore FRV II was incorporated on July 9, 2016.

Infrastructure investment trust IndiGrid on Saturday said it has inked an agreement to acquire a 100 percent stake in two projects of FRV Solar Holdings for Rs 660 crore. The completion of acquisition would depend upon receipt of relevant approvals and completion of contractual obligations, IndiGrid said in a BSE filing.

''India Grid Trust (IndiGrid) has signed a securities purchase agreement on December 18, 2020, for the acquisition of 100 percent in FRV Andhra Pradesh Solar Farm-I Private Ltd (FRV I) & FRV India Solar Park II – Private Ltd (FRV II) from FRV Solar Holdings XI BV,'' it said. The enterprise value of the deal is Rs 660 crore, subject to adjustment on account of the movement in cash, tariff receivables, other assets, liabilities outstanding as on valuation date, and any other adjustments as specified in the definitive agreements, it added.

IndiGrid will acquire 100 percent shareholding and management control in FRV I and FRV II. FRV I was incorporated on July 14, 2016. It operates a 50 MW (AC) solar power plant in Ananthapuramu Solar Park. The asset was commissioned in July 2018. During 2019-20, FRV I had total revenue of Rs 47 crore FRV II was incorporated on July 9, 2016. It also operates a 50 MW (AC) solar power plant in Ananthapuramu Solar Park. The project was commissioned in January 2019. In the last fiscal year, FRV II had total revenue of Rs 50 crore.

Cyril Amarchand and PriceWaterHouse Coopers represented IndiGrid on the transaction. Khaitan & Co and Greenstone Advisors represented FRV Group.