Adani Transmission (ATL) rose 2.75% to Rs 892.95 after the company said it has signed definitive agreements with Essel Infraprojects (EIL) for the acquisition of Warora-Kurnool Transmission (WKTL).
ATL's acquisition values the enterprise valuation of the target at Rs 3,370 crore. WKTL will develop, operate and maintain transmission system aggregating to about 1,750 ckt km in Maharashtra, Telangana and Andhra Pradesh and a 765/400 kV substation at Warangal.
The regulatory approval for substitution of original awardee in the contract by ATL has already been received from Central Electricity Regulatory Commission. The lenders consent and other necessary regulatory approvals shall be obtained before closure of transaction.
The acquisition of WKTL will bolster ATL's pan-India presence, consolidating further its position as the largest private sector transmission company in India. This strategic West to South 765 KV interconnector with substation in Southern India, completes ATL presence in all regions of the country.
This asset will not only increase ATL's size and scale but will also take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022.
With this acquisition, the cumulative network of ATL will reach approximately 17,200 ckt km, out of which approximately 12,350 ckt km is already operational and approximately 4,850 ckt km (including this asset) is in various stages of execution.
With enhanced scale of operations, ATL will enjoy substantial benefits in terms of cost optimisation and shared resources.
Anil Sardana, MD & CEO, Adani Transmission, said, "The acquisition is a further demonstration of ATL's drive towards differentiated capability through inorganic growth, successful integration & making such assets value accretive, for long term sustainable value creation for its stakeholders."
Adani Transmission is the transmission and distribution business arm of the Adani Group, one of India's largest business conglomerates.
The company's consolidated net profit surged 94.09% to Rs 395.31 crore in Q3 FY21 from Rs 203.67 crore in Q3 FY20. Net sales during the quarter declined 6.50% YoY to Rs 2597.02 crore.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
