Why This Adani Stock Is Climbing 3% Today

Adani Energy Solutions’ share price continued to make gains for the fourth straight session on Wednesday morning, going up close to 3%.

What Happened: Adani Energy Solutions Limited has increased its foothold in the renewable energy sector as it acquired Halvad Transmission from PFC Consulting Limited (PFCCL).

Halvad Transmission is a special purpose vehicle (SPV) established by PFCCL to evacuate 7 gigawatts of renewable energy from Khavda RE park. AESL secured the project via a competitive bidding process and will bring the project to fruition over the next 24 months on a BOOM (build, own operate, and maintain) basis.

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Located in Gujarat, India, the project will facilitate the evacuation of 7 gigawatts of renewable energy by creating a connection from Khavda to Halvad. To execute the 301 kilometres transmission project, AESL plans to invest around ₹3,000 crore for building, owning, operating and maintaining the infrastructure for a span of 35 years.

The company made another major announcement late on Tuesday. Adani Transmission Step-Four Ltd, a wholly-owned subsidiary of Adani Energy Solutions, entered into a definitive agreement to establish a joint venture with United Arab Emirates-based Esyasoft Holdings. The joint venture will operate on a 49:51 partnership, with a focus on implementing smart metering projects in India and globally.

As per the agreement, Esyasoft Holdings will be these software products to the joint venture company formed by Adani Transmission Step-Four Ltd and Esyasoft Holdings. The collaboration aims to utilize existing software products and drive further development in this field through the joint venture.

Price Action: Shares of Adani Energy were trading 2.43% higher at ₹1,066.90 as the markets opened on Wednesday.

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