Adani Energy Solutions Ltd (AESL) has announced the acquisition of Essar’s Operational Mahan-Sipat Transmission Assets for Rs 1,900 crore.
The acquisition, completed on Thursday, encompasses a 100 percent stake in Essar Transco Ltd. This marks a significant milestone in AESL’s expansion strategy.
The deal includes the acquisition of a fully operational 400 kV, 673 circuit kilometers (ckt km) inter-state transmission line. It connects Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh.
This move is aimed at consolidating AESL’s footprint in central India, bolstering its existing assets in the region.
In a statement issued by the company, AESL highlighted the strategic importance of the acquisition.
It stated, “The acquisition of the Mahan-Sipat transmission network will consolidate AESL’s presence in central India with four operating assets having 3,373 ckt km in the region.”
AESL facilitated the acquisition through its wholly-owned subsidiary, Adani Transmission Step-Two Limited (ATSTL). It aligns with the company’s commitment to enhancing operational efficiencies and leveraging synergies within its portfolio.
AESL emphasized its dedication to capitalizing on market opportunities and driving India’s energy transition.
“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,” the company stated.
With this acquisition, AESL’s cumulative network now exceeds 21,000 ckt kms.
It solidifies its position as a leading player in the Indian transmission sector.
To finance the acquisition, ATSTL secured funding on highly competitive terms, setting a new standard for capital raising within AESL.
The move is expected to unlock lower-cost debt for the company’s operational assets, contributing to its long-term financial sustainability.
Adani Energy Solutions
AESL, the largest private transmission company in India, operates across 17 states and boasts a transformation capacity of 57,011 MVA.
Serving over 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ, the company reported operational revenue of Rs 14,217 crore for the fiscal year ended March 31, representing a 17 per cent year-on-year increase.
The company reported a comparable profit after tax (PAT) of Rs 1,197 crore, up by 12 per cent. Its operational EBITDA for the full year stood at Rs 5,695 crore. It reflected a 7 per cent year-on-year increase.
The acquisition of Essar Transco Ltd marks a significant milestone for AESL, underscoring its commitment to strategic growth and operational excellence in India’s energy sector.
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