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Adani Transmission gains after completing acquisition of GMR Energy's transmission assets

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Capital Market
Last Updated : Oct 11 2016 | 12:01 AM IST

Adani Transmission gained 2.41% to Rs 42.50 at 10:15 IST on BSE after the company announced that it completed the acquisition of operational transmission assets of GMR Energy.

The announcement was made after market hours on Friday, 7 October 2016.

Meanwhile, the S&P BSE Sensex was up 63.08 points or 0.22% at 28,124.22.

On BSE, so far 42,454 shares were traded in the counter as against average daily volume of 2.79 lakh shares in the past one quarter. The stock hit a high of Rs 42.90 and low of Rs 42 so far during the day. The stock had hit a record high of Rs 44.55 on 5 October 2016. The stock had hit a 52-week low of Rs 26.30 on 29 February 2016. The stock had outperformed the market over the past one month till 7 October 2016, gaining 4.67% compared with 2.99% fall in the Sensex. The scrip had also outperformed the market in past one quarter, advancing 10.81% as against Sensex's 3.16% rise.

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

Adani Transmission (ATL) completed the acquisition of 74% shares of Maru Transmission Service Company Limited (MTSCL) and 49% shares of Aravali Transmission Service Company Limited (ATSCL). MTSCL and ATSCL are the operational transmission assets of GMR Energy. While payment has been made for 100% stake in both the companies, the remaining stake in both the companies will be transferred to ATL in a manner consistent with the transmission service agreement. This acquisition is in sync with ATL strategy to enhance the value for its stakeholders, through organic as well as inorganic growth.

With these acquisitions, cumulative network of ATL will reach around 10,900 circuit kilometre (ckt kms), out of which around 9,000 ckt kms are under operation (including 3,500 ckt kms under process of acquisition) and approximate 1,900 ckt kms are under various stages of construction. With this scale of operations, ATL will enjoy substantial benefit of scale driving in terms of cost optimization and shared resources.

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On 1 July 2016, Adani Transmission had said that it signed definitive agreement with GMR Energy to acquire 49% stake of ATSCL and 74% stake of MTSCL with an option to acquire 100% in both the companies in a manner consistent with transmission service agreement and applicable consents. The cost of acquisition of 100% stake of MTSCL was around Rs 60.35 crore. The cost of acquisition of 100% stake of ATSCL was around Rs 40 crore.

Recently, ATL successfully concluded two capital market fund raising programmes - US dollar bond with overwhelming responses from global investors across Asia, USA, London and rupee denominated INR offshore bond (masala bond), the company said in a statement.

Adani Transmission made its debut on the bourses as a separate listed entity on 31 July 2015 after a Composite Scheme of Arrangement between Adani Enterprises, Adani Ports and Special Economic Zone, Adani Power, Adani Transmission and Adani Mining Private Limited.

Adani Transmission's consolidated net profit jumped 297.2% to Rs 122.71 crore on 35% rise in net sales to Rs 632.01 crore in Q1 June 2016 over Q1 June 2015.

Adani Transmission is into power transmission business and is a part of business conglomerate Adani Group.

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First Published: Oct 10 2016 | 10:27 AM IST

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