Adani Energy Solutions (AESL) through its wholly owned subsidiary Adani Transmission Step-Two (ATSTL) has acquired a 100% stake in Essar Transco, which houses operational Mahan-Sipat transmission assets for an Enterprise Value of Rs 1,900 crore. The share acquisition is pursuant to definitive agreements signed in June, 2022.
The acquisition covers fully operational 400 kV, 673 ckt kms inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh. The project operates under the Central Electricity Regulatory Commission (CERC) regulated return framework and was commissioned on September 22, 2018.
In accordance with AESL’s capital management philosophy, ATSTL also raised a financing at the most competitive terms. This establishes a new benchmark for AESL to raise capital and unlocks the lower cost debt for its operational assets. The financing exemplifies the quality of AESL’s utility cashflows with a long-term license life, well supported through stable regulatory framework. MUFG Bank Ltd. is the sole lender for the financing.
The acquisition of Mahan-Sipat transmission network will consolidate AESL’s presence in central India with 4 operating assets having 3,373 ckt km in the region. The acquisition is consistent with the AESL’s philosophy of augmenting its existing capacities and bringing in efficiency through operational synergies and creating network effect. Along with a robust energy demand, the ability to recognize and tap market opportunities within the areas of interest continues to propel and position AESL at the forefront of energy transition in India.
Adani Energy Solutions (formerly known as Adani Transmission) is the transmission business arm of the Adani Group, one of India’s largest business conglomerates.
| Company Name | CMP |
|---|---|
| NTPC | 400.30 |
| Tata Power | 427.65 |
| Adani Power | 210.75 |
| Power Grid Corp | 314.95 |
| Torrent Power | 1686.35 |
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