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Adani Green Energy gains after buying Essel's solar assets

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Capital Market
Last Updated : Aug 30 2019 | 11:16 AM IST

Adani Green Energy rose 7.15% to Rs 46.45 after the company said it signed a definitive agreement for acquisition of 205 MW operating solar assets of Essel Group.

The stock hit a high of Rs 47.9 and a low of Rs 45.55 so far during the day.The stock hit a 52-week high of Rs 62.7 on 30 Aug 2018. The stock hit a 52-week low of Rs 29.15 on 10 Oct 2018.

On the BSE, 1.19 lakh shares were traded in the counter so far compared with average daily volumes of 45,000 shares in the past two weeks.

Adani Green Energy (AGEL) signed a securities purchase agreement for acquisition of 205 megawatts (MW) operating solar assets of Essel Green Energy (EGEPL) and Essel Infraprojects (EIL). The assets are located in Punjab, Karnataka and Uttar Pradesh. All the assets have long term power purchase agreements (PPAs) with various state electricity distribution companies. The portfolio is relatively young with average remaining PPA life of approximately 22 years.

The closing of the transaction is subject to customary approvals and conditions. The acquisition of these assets isat an enterprise valuation of approximately Rs 1,300 crore. The existing long-term funding will continue.

On a consolidated basis, the company reported a net loss of Rs 96 crore in Q1 June 2019 over a net loss of Rs 74.27 crore in Q1 June 2018. Net sales rose 39.95% to Rs 660.81 in Q1 June 2019 over Q1 June 2018.

Adani Green Energy (AGEL), a part of the Adani Group, is one of the largest Renewable Power Generation companies in India. The company builds, owns and operates power plants powered by renewable sources of energy like solar and wind.

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First Published: Aug 30 2019 | 10:52 AM IST

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