Powergrid Infrastructure Investment Trust

- PGInvIT currently has outstanding external borrowings of ₹10,682 million, with recent loans raised from HDFC Bank in March 2022 and December 2024. - The net borrowing ratio is 4.88%, indicating ample headroom to fund future acquisitions entirely through debt. - There is a plan to form a consortium with POWERGRID for up to 2 tariff-based competitive bidding (TBCB) projects, each estimated around ₹500 crores; financing will be predominantly through debt with minimal equity outlay. - The investment approval and agreements for this consortium are in the pipeline, awaiting finalization and government approvals. - PGInvIT is permitted to invest up to 10% of its value (around ₹880 crores) in such projects, suggesting cautious expansion without large equity fundraising at present. - No explicit mention of equity fundraising was noted in the transcript.

- PGInvIT is planning to participate in up to 2 transmission projects under tariff-based competitive bidding (TBCB) with a combined project cost of approx. ₹500 crores through a consortium with POWERGRID as lead partner (PGInvIT holding 74%, POWERGRID 26%). Agreement is under finalization. - The 400 kV line bay project at Parli new substation for renewable energy interconnections (PPTL) is underway with an investment of ₹25 crores, expected to commission by December 31, 2025, with estimated annual tariff of ₹4.5 crores. - Future investments include strategic acquisitions focusing on operational transmission assets, with debt financing to maintain optimal capital structure. - PGInvIT is monitoring state-level asset monetization opportunities and may consider renewables investments, but the core focus remains on power transmission. - Cash balance approx. ₹363 crores with permission to invest up to 10% of InvIT’s value in new projects, indicating capacity for near-term capex.

- PGInvIT plans value-accretive growth primarily through strategic acquisitions of operational transmission assets aligned with InvIT regulations and unitholder interests. - Exploring participation in tariff-based competitive bidding (TBCB) projects, initially targeting up to 2 projects totaling ~₹500 crores, in consortium with POWERGRID. - Focus on transmission sector with potential expansion into renewable energy assets, including future outlook on Battery Energy Storage Systems (BESS). - Pipeline includes substantial national transmission investment, e.g., ₹9.16 lakh crores up to 2032, with ~1.91 lakh circuit kilometers of transmission lines planned, creating acquisition opportunities post-commissioning. - Monitoring state-level asset monetization opportunities for inorganic growth, though currently limited. - Projects under development, like the PPTL 400 kV line bay, will add incremental revenue (~₹4.5 crores annually post-dec 2025). - Overall expectation is consistent, stable, and visible revenue growth driven by operational excellence, new project additions, and strategic acquisitions.

- PGInvIT aims for value-accretive growth primarily through strategic acquisitions of operational transmission assets, maintaining a low leverage to fund acquisitions largely via debt. - Participation in tariff-based competitive bidding (TBCB) projects, especially in consortium with POWERGRID, targeting up to two projects costing around ₹500 crores to tap into the ₹9 lakh crore+ transmission pipeline till 2032. - Focus on expanding within power transmission, leveraging core competence and exploring opportunities in renewable energy and Battery Energy Storage System (BESS) projects, though no BESS projects are currently in pipeline. - Expected revenue impact from ongoing projects like the 400 kV line bay at Parli substation with an estimated annual tariff of ₹4.5 crores, commissioning scheduled by December 2025. - Growth constrained by limited near-term availability of monetizable assets but supported by a robust sector outlook with significant transmission infrastructure investments planned by the government. - Commitment to maintain stable and visible distributions targeting ₹12 per unit for FY 2026, reflecting operational excellence and predictable cash flows.

- PGInvIT has an ongoing opportunity pipeline under the Tariff Based Competitive Bidding (TBCB) mechanism, planning to participate in up to 2 projects with an estimated combined cost of around ₹500 crores. - The consortium with POWERGRID as lead partner (holding 26% equity) and PGInvIT holding 74% is in the agreement stage; bidding will start once approvals and agreements are finalized. - The broader transmission sector has a planned investment of approx. ₹9.16 lakh crores up to 2032, with 1,91,474 circuit kilometers of transmission lines and 12,74,185 MVA transformation capacity additions. - As of now, about ₹3.5 lakh crores worth projects have been tendered, leaving around ₹6 lakh crores in the pipeline. - No private-sector asset acquisitions or Battery Energy Storage System (BESS) projects are currently in the pipeline. - The PPTL project upgrade (400 kV line bay at Parli substation) with a cost of ₹25 crores is expected to commission by Dec 31, 2025.