Sekura Energy to acquire power transmission assets from Essel Infraprojects

Sekura is promoted by Edelweiss Infrastructure Yield Plus Fund and focuses solely on the power sector

Edelweiss Infrastructure fund- backed Sekura Energy Tuesday signed an agreement to acquire two operating and two under-construction power transmission assets from Essel Infraprojects, for an enterprise valuation of Rs 6,000 crore, the companies said in a joint statement.

While the operational projects are Darbhanga-Motihari Transmission and NRSS XXXI (B) Transmission, the under-construction projects are Warora-Kurnool Transmission and NRSS XXXVI Transmission which will be commissioned by FY20. The two under-construction assets will be acquired post-commissioning, it said, adding these four projects together has an enterprise valuation of Rs 6,000 crore.

Sekura is promoted by Edelweiss Infrastructure Yield Plus Fund and focuses solely on the power sector. "This transaction fits well with our strategy of investing in infrastructure assets which can deliver predictable long-term returns to investors. Sekura invests in long-term yielding opportunities in the power sector," its head Subahoo Chordia said in a statement.

"With this acquisition, Sekura will be one of the leading asset owners and investors in the power sector", Avinash Rao, Sekura chief executive said.

Essel Infraprojects chief executive Rohit Modi said asset monetization is an important aspect of their strategy to create growth capital. The total enterprise value of these four projects is Rs 6,000 crore and these transactions are the first of the monetization plans of the company. The Essel group has plans to expand its footprint in the emerging infrastructure sectors like water, railways, municipal solid waste etc, he added.

Edelweiss Infrastructure Yield Plus is a Sebi- registered Category I AIF and invests in sectors such as power transmission, renewables, roads and highways, and other infrastructure which meet its risk-return matrix. It is the largest yield-focused infrastructure AIF with capital commitments from both domestic and global investors.

Edelweiss Alternate Asset Advisors is the investment manager to the fund. The Edelweiss group offers asset management and advisory capabilities and currently has USD 26 billion of assets under management. Essel Infraprojects has four major strategic business units--transport, green energy & transmission, smart utilities, environment, and 10 verticals, and has an order book of USD 5.06 billion.

The Essel group ventured into the infrastructure space in 2007 with the surface transport segment and today has presence in transport (roads and railways), power transmission & distribution, environment (municipal solid waste), wastewater treatment and water desalination, solar & hydel power, and integrated utilities like power, water, and city gas distribution.

(With inputs from agencies.)