Adani Energy Solutions Ltd has completed full equity acquisition in Essar Transco Ltd.
In an official release, AESL said its wholly-owned subsidiary “Adani Transmission Step-Two Ltd” acquired a 100 per cent stake in Essar Transco Ltd, 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 asset
The acquisition covers the fully operational 400kV interstate transmission line, spanning 673 ckm, running from Mahan in Madhya Pradesh to the Sipat pooling station in Chhattisgarh.
The project operates under the Central Electricity Regulatory Commission (CERC) regulated return framework and was commissioned on September 22, 2028.
In June 2022, Adani Energy Solutions Ltd (then known as Adani Transmission Ltd) had announced that it had reached an agreement to acquire the 400kV Mahan-Sipat transmission line from Essar Group. (Read more)
Impact on portfolio
The acquisition of Mahan-Sipat transmission network will consolidate AESL’s presence in central India with four operating assets worth 3,373 ckm in the region. The acquisition is consistent with theAESL’s philosophy of augmenting its existing capacities and bringing in efficiency through operational synergies and creating network effect, the release said.
Following this acquisition, AESL’s transmission line portfolio has crossed 21,000 ckm, according to estimates made by T&D India. As of March 31, 2024, AESL had an operational portfolio of 20,509 ckm. (Read full story)
Competitive financing
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 cash flows with a long-term license life, well supported through stable regulatory framework. MUFG Bank Ltd is the sole lender for the financing, the release added.
Also read: Adani Energy Seeks Licence For Halvad Transmission
Featured photograph is for representation only.
