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Sterlite Power in talks with GIC for $300 mn fund infusion; weighs demerger of solutions biz

Sterlite Power, which is backed by metals magnate Anil Agarwal’s Vedanta Group, has embarked on an internal restructuring exercise to unlock value as part of which the firm seeks to carve out its solutions vertical and then induct Singapore’s sovereign wealth fund GIC as a strategic partner for the power transmission business.

“An internal rejig is underway at Sterlite Power. The plan is to demerge the solutions business and then list it later on the domestic bourses,” said one of the persons above. The solutions business aids power utilities with strategic solutions for augmentation and upgrades.

This person elaborated, “GIC is not keen on exposure to the solutions business. Once the spin-off is done, GIC plans to invest around $300 million as part of a 51:49 joint venture with Sterlite Power for the power transmission business.”
Incidentally, Sterlite Power is the sponsor of India’s first power sector InvIT, India Grid Trust (IndiGrid) that is listed. Pratik Agarwal, the MD of Sterlite Power, is the nephew of Anil Agarwal. In September 2022, the firm announced that it had withdrawn its DRHP and deferred its listing plans due to unfavourable market conditions.

Under its solutions business, which is proposed to be demerged, Sterlite Power helps power utilities tackle their network congestion challenges by providing bespoke solutions for upgrade/uprate of brownfield transmission infrastructure projects. These strategic solutions through system design, application engineering, complete engineering procurement and construction as well as project management , commissioning and lifecycle services, are aimed at improved performance in the short and long term.

Sterlite Power has 34,000 km+ OPGW (optical ground wire) -based communication projects under live line condition completed or under execution with 108 critical corridors in 15 states.

The firm is also a leading manufacturer of power cables, conductors and OPGW, supplying to all major Indian states and private utilities besides exporting to 60+ countries. It has four manufacturing assets in Silvassa, Jharsuguda and Haridwar.

https://www.moneycontrol.com/news/business/companies/sterlite-power-in-talks-with-gic-for-300-mn-fund-infusion-weighs-demerger-of-solutions-biz-11100221.html