Anzen InvIT Pursues ₹1100 Crore Fundraise for Kudgi Acquisition, Proposes Sponsor Switch

Anzen India Energy Yield Plus Trust is initiating a significant strategic move, planning to raise approximately ₹1,100 crore by issuing about 8.80 crore units at ₹125 each. The capital raised is intended to fund the acquisition of Kudgi Transmission Limited from its affiliates.

Key Announcements in Filing

Anzen India Energy Yield Plus Trust has announced plans concerning a major corporate restructuring, with its Board of Directors set to consider these proposals around April 16, 2026. The proposed changes include a shift in sponsor, with Epic Green Urja Private Limited slated to replace SEPL Energy Private Limited. The InvIT also intends to conduct a public offering to institutional investors, issuing approximately 8.80 crore units at ₹125 per unit to raise about ₹1,100 crore. These funds are designated for the acquisition of Kudgi Transmission Limited from Infrastructure Yield Plus II and its affiliates. The completion of these significant changes is subject to necessary approvals from the InvIT's unitholders and compliance with SEBI InvIT Regulations.

Strategic Rationale for Changes

The introduction of Epic Green Urja Private Limited as the potential new sponsor suggests a possible shift in strategic direction and management approach for Anzen InvIT. Acquiring Kudgi Transmission Limited is poised to expand the trust's portfolio of infrastructure assets, which could enhance its overall scale and revenue-generating capacity. These initiatives aim to strengthen Anzen InvIT's standing in the energy infrastructure sector, supporting its goal of delivering predictable yield and growth to investors.

Recent Portfolio Expansion and Sponsor's Exit

Anzen InvIT has actively grown its portfolio. The trust's recent activities include a preferential issue completed in late March 2026, raising ₹696.44 crore at ₹117 per unit. This capital, combined with debt, financed the acquisition of a 74% stake in 12 solar energy assets valued at ₹2,520 crore, boosting its Assets Under Management (AUM) to approximately ₹6,552 crore. Meanwhile, SEPL Energy Private Limited, the original sponsor, had progressively reduced its stake since late 2025, completing its full divestment by April 1, 2026. Earlier reports in March 2026 indicated Anzen's intention to acquire Kudgi Transmission Limited for an enterprise value of ₹20,691 million.

Key Implications for Unitholders

This proposed restructuring carries several implications for existing unitholders:

• A potential shift in strategic direction and oversight with the expected induction of Epic Green Urja as the new sponsor.
• An expansion of Anzen InvIT's asset base through the acquisition of Kudgi Transmission Limited, a power transmission asset.
• Dilution for existing unitholders due to the proposed issuance of approximately 8.80 crore new units.
• Confirmation of SEPL Energy Private Limited's complete exit from its sponsor role in the trust.
• The InvIT must ensure adherence to SEBI regulations for the new sponsor's appointment.

Potential Hurdles and Risks

Several factors could impact the successful execution of these plans:

• Unitholder Approval: The proposed sponsor change and unit issuance depend on unitholder consent, which is not guaranteed and may introduce deal uncertainty.
• Dissenting Unitholders: Concerns may arise regarding the new sponsor's approach to exit options for dissenting unitholders.
• Regulatory Compliance: The induction of Epic Green Urja as sponsor is conditional on meeting all SEBI InvIT Regulations.
• Execution Risk: Successfully integrating the new asset and managing the operational transition under a new sponsor will be critical.

Industry Landscape: Anzen Among Peers

Anzen InvIT operates within the infrastructure investment trust sector, competing with peers focused on similar energy and transmission assets:

• Powergrid Infrastructure Investment Trust (PGInvIT): Primarily focused on power transmission assets, sponsored by Power Grid Corporation of India Ltd.
• IndiGrid Infrastructure Trust: Invests in electricity transmission and renewable energy assets, backed by KKR.
• Sustainable Energy Infra Trust (SEIT): A renewable energy focused InvIT, sponsored by Mahindra Susten and OTPP, holding a significant solar portfolio.

While PGInvIT generates stable revenue from long-term transmission service agreements, SEIT holds a substantial operational solar portfolio.

Key Financial Figures

• Aggregate Issuance Value: ₹1,100 crore (FY26 - proposed)
• Units to be Issued: 8.80 crore units (FY26 - proposed)
• Kudgi Transmission Enterprise Value: ₹20,691 million (As of Dec 31, 2025)

Looking Ahead: Investor Watchlist

Investors will be closely watching several key developments:

• The outcomes of unitholder meetings scheduled to vote on the proposed sponsor change and unit issuance.
• Formal regulatory approvals for the new sponsor and the completion of the Kudgi Transmission Limited acquisition.
• The announcement of an effective date for Epic Green Urja's induction as the new sponsor.
• Further details on the integration plans for Kudgi Transmission Limited into Anzen InvIT's portfolio.
• The InvIT's future strategy for asset acquisition and growth under the new sponsor.