Adani Transmission’s (ATL’s) announcement of signing a binding agreement with Reliance Infrastructure (RInfra) for buying the latter’s 100 per cent stake in the Mumbai power business lifted Street sentiment. The ATL stock was locked in the upper circuit (no sellers) in the last half hour of trade, and closed with a gain of 10 per cent at Rs 225.25 on Thursday.
The Street enthusiasm seems justifiable. The acquisition gives ATL an entry into the more profitable power distribution business and in a large and enviable market. Although growth rates are not high, the Mumbai power distribution business offers stable revenue and