Powergrid Infrastructure Investment Trust

- PGInvIT currently has external borrowing of Rs. 5,698 million from HDFC Bank, a floating rate loan linked to 3-month Treasury Bills. - Net debt to AUM is about 0.26%, providing significant headroom for future acquisitions through debt. - For acquiring the balance 26% stake in the 4 SPVs, PGInvIT plans to raise debt; the mix of floating and fixed debt along with possible NCD issuances and bank loans is expected. - No specific equity fundraising was mentioned. - Discussions are ongoing with States for asset acquisitions which may require funding. - Management emphasizes acquiring new assets primarily through debt financing given the current credit rating and capacity. - No concrete timeline or plans for fresh equity issuance disclosed as of now.

- PGInvIT has commissioned the Bus reactor at Kala Amb Substation (RTM project) in Feb 2024; tariff to be decided by the regulator (CERC). - PPTL SPV is implementing a 400 kV line bay at Parli under RTM, expected to be commissioned by Dec 31, 2025. - The Trust plans to acquire the balance 26% stake in four SPVs from POWERGRID, expected in FY24-25 as per the Share Purchase Agreement. - Discussions are underway with some States for acquisition of intra-state transmission assets, but this will take time due to approvals and new government guidelines. - PGInvIT is evaluating private sector acquisition opportunities, expected to pick pace in 12-18 months once relevant assets mature. - Overall, future acquisitions depend on operational suitability, regulatory compliance, and unitholder interest. - No immediate investments in generation or solar assets, citing lack of experience and higher risk. Thus, current/future capex mainly involves ongoing RTM projects and strategic acquisitions focused on transmission assets.

- PGInvIT expects minimal growth without new asset acquisitions; existing assets' revenue profiles are dipping. - Distribution is guided at Rs. 12 per unit for FY24-25, but sustaining this beyond 2-3 years without acquisitions is uncertain. - Focus remains on acquiring the balance 26% stake in four SPVs from POWERGRID, completing a committed share purchase agreement. - Management is actively pursuing acquisition opportunities in intra-state transmission sectors from States, although this is expected to take time due to approvals. - There is cautiousness about entering new sectors like generation or solar due to lack of expertise and higher risks. - Monetization of state power transmission assets under the Government of India’s Asset Monetization Program is seen as a significant future growth avenue. - Any acquisition must provide value accretion above cost of debt plus risk premium; fresh asset acquisition is key to meaningful revenue growth.

- PGInvIT expects distribution of Rs. 12 per unit for FY 2024-25 but cautions maintaining this beyond 2-3 years without new acquisitions is difficult due to dipping revenue and rising expenses (Page 7, 8). - Future growth hinges on acquiring new assets; focus is on acquiring the balance 26% stake in four SPVs from POWERGRID, which is mandatory due to a prior SPA but does not materially enhance cash flows (Pages 12-13, 15). - The trust is exploring intrastate transmission assets with State governments; these discussions are ongoing and expected to materialize over the next 12-18 months (Pages 6, 14). - PGInvIT is cautious about entering new sectors like generation or solar due to lack of expertise and higher risk (Pages 14-15). - Growth and improved returns will come from strategic acquisitions and operational efficiencies; absence of further asset acquisition could lead to stagnation or reduction in distributions (Pages 14, 15, 16).

- PGInvIT currently does not specifically mention a formal order book or pending orders in the transcript. - The Trust is focused on acquiring the 26% remaining stake in four SPVs from the Sponsor as per the existing Share Purchase Agreement. - Discussions are ongoing with some Indian States for monetization of intrastate transmission assets, expected to take time due to the novelty and regulatory approvals required. - Acquisition from state transmission assets is expected to materialize within 12 to 18 months as assets reach operational status. - The Sponsor's monetization plan is also under evaluation for potential future acquisitions. - PGInvIT aims to acquire operational transmission assets based on operational history and regulatory compliance. - No concrete new asset acquisitions or large pending orders announced; growth via acquisitions is expected but timelines depend on approvals and market readiness.