Adani Energy Solutions Completes Essar Transco Acquisition for ₹1900 Cr

Adani Energy Solutions Limited (AESL) has successfully acquired Essar Transco Limited, thereby augmenting its transmission network.

What Happened: AESL, through its wholly owned subsidiary Adani Transmission Step Two Limited (ATSTL), has acquired a 100% stake in Essar Transco Limited, as per a regulatory filing on Thursday. The transaction was completed on 15th May, 2024. As a result, Essar Transco Limited has now become a wholly owned subsidiary of ATSTL and the step-down wholly owned subsidiary of AESL.

The acquisition, worth ₹1,900 crores, will add 673 ckt kms, 400 kilovolts inter-state transmission line to AESL’s network, thereby extending its cumulative network to over 21,000 ckt kilometres.

See Also: Apollo Tyres Shares Surge 6 Despite 14 Dip In Profit Why Are Analysts Upgrading The Stock

This acquisition aligns with AESL’s growth strategy, which is centered on both organic and inorganic growth opportunities. The company is confident that this acquisition will aid in O&M cost optimization and shared resources.

MUFG Bank Ltd. was the sole lender for the financing.

Why It Matters: This acquisition will add 673 ckt kilometres, 400 kilovolt inter-state transmission line to AESL’s network. Through the acquisition, the company is also optimizing its operations and maintenance costs and shared resources. Moreover, the financing of the acquisition at competitive terms sets a new precedent for financing operational assets under AESL.

Read Next: Brokerages Downgrade This Multinational Oral Care Company Check Out Why

Engineered by Benzinga Neuro, Edited by Ananthu CU

The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.

Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.

Posted In: NewsFinancingPress ReleasesAdani Energy Solutions