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Adani Transmission gains after bagging Rajasthan project

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Capital Market
Last Updated : Feb 23 2018 | 9:50 AM IST

Adani Transmission rose 1.78% to Rs 211.25 at 9:29 IST on BSE after the company said it received a letter of intent to construct, own, operate and maintain a transmission project in Rajasthan.

The announcement was made after market hours yesterday, 22 February 2018.

Meanwhile, the S&P BSE Sensex was up 115.24 points, or 0.34% to 33,934.74.

On the BSE, 12,000 shares were traded in the counter so far compared with average daily volumes of 1.17 lakh shares in the past one quarter. The stock had hit a high of Rs 214.30 and a low of Rs 210.10 so far during the day. The stock hit a record high of Rs 252 on 18 January 2018. The stock hit a 52-week low of Rs 60.50 on 9 March 2017.

The stock had outperformed the market over the past 30 days till 22 February 2018, falling 5.53% compared with 6.48% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 3.26% as against Sensex's 0.42% rise. The scrip had also outperformed the market in past one year, rising 229.71% as against Sensex's 17.05% rise.

The large-cap company has equity capital of Rs 1099.81 crore. Face value per share is Rs 10.

Adani Transmission (ATL), the largest private power transmission companies operating in India, has received the letter of intent (LOI) from PFC Consulting, a wholly-owned subsidiary of Power Finance Corporation, to construct, own, operate and maintain the transmission project in Rajasthan.

The project "Fatehgarh-Bhadla Transmission" has approximately 200 circuit kilometres (ckt kms) of line at voltage level of 765 kilovolt (KV) and one substation at voltage level of 400 KV. This project is primarily being constructed to wheel out renewable energy from Rajasthan to different beneficiaries within and outside of the state.

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This project has been awarded to ATL through a tariff based competitive bidding process. With this project, ATL will strengthen its existing significant presence in Rajasthan with 2 operational transmission projects (i.e. Aravali & Maru transmission company) and 4 under construction assets i.e. Suratgarh Bikaner, PPP-8, PPP-9 & PPP-10.

On completion of this acquisition, apart from largest distribution network, the cumulative transmission network of ATL will reach around 12000 ckt kms, out of which approximate 9000 ckt kms are under operation. The transformation capacity of ATL will also increase to 19,300 MVA from 35 substations (Including 8 EHV Substations under acquisition) spread across the country.

With this growth opportunities, Adani Transmission will enjoy benefit of scale and of being an integrated distribution and transmission business in India.

Adani Transmission's consolidated net profit rose 747.99% to Rs 841.88 crore on 144.41% rise in net sales to Rs 1782.29 crore in Q3 December 2017 over Q3 December 2016.

Adani Transmission is the transmission business arm of the Indian business conglomerate - Adani Group.

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First Published: Feb 23 2018 | 9:34 AM IST

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