Adani Energy Solutions Acquires Essar's Mahan-Sipat Transmission Assets for Rs 1,900 Crore
Adani Energy Solutions Ltd (AESL) has made a significant move in expanding its presence in the energy sector with the acquisition of Essar Transco Ltd for Rs 1,900 crore. This acquisition includes a fully operational 400 kV, 673 ckt kms inter-state transmission line connecting Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh. AESL sees this acquisition as a strategic step towards consolidating its presence in central India, enhancing its operational assets to 3,373 ckt km in the region.
Through its subsidiary, Adani Transmission Step-Two Limited (ATSTL), AESL aims to leverage operational synergies and create a network effect, aligning with its philosophy of augmenting existing capacities. The company views this acquisition as an opportunity to tap into the robust energy demand in India and position itself at the forefront of the country's energy transition.
With this acquisition, AESL's cumulative network now surpasses 21,000 ckt kms, further solidifying its position as the country's largest private transmission company. Financing for the acquisition was secured at competitive terms, setting a new benchmark for capital raising and unlocking lower cost debt for AESL's operational assets.
AESL's footprint spans across 17 states, serving more than 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ. The company's operational revenue for the fiscal year ended March 31 saw a significant increase of 17 percent year-on-year, reaching Rs 14,217 crore. Comparable profit after tax (PAT) also rose by 12 percent to Rs 1,197 crore, while operational EBITDA stood at Rs 5,695 crore, marking a 7 percent year-on-year increase.
This acquisition not only strengthens AESL's position in the energy market but also reflects its commitment to capitalizing on market opportunities and driving efficiency through strategic investments. AESL continues to demonstrate its leadership in the energy sector, poised to play a pivotal role in India's evolving energy landscape.
