informed that its subsidiary Adani Electricity Mumbai Limited (AEML) and a subsidiary of Qatar Investment Authority (QIA) - Qatar Holding LLC, have signed definitive agreements for the sale of 25.1% stake in AEML and for shareholder subordinated debt in AEML.
Following the news, shares of Adani Transmission hit a 52-week high.
The total QIA investment in AEML will be ~Rs3,200cr (equivalent to approximately $450mn).
AEML is the licensee for an integrated power distribution, transmission and generation business that currently serves more than 3 million consumers across a license area of approximately 400 square kilometers in the city of Mumbai, the world’s seventh largest city by size of population. AEML’s market share of Mumbai is approximately 87% by license area, 67% by consumers served and 55% by electricity supplied.
As part of the Transaction, ATL and QIA have agreed definitive plans to ensure that over 30% of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023. In addition, ATL and QIA have agreed a number of other green initiatives to combat climate change and facilitate the transition to a sustainable, low carbon economy. The Transaction demonstrates the increasingly strong relations between India and Qatar and the commitment of both countries to further develop their close ties in the years ahead.
Adani Transmission Ltd is currently trading at Rs337.40 up by Rs1.2 or 0.36% from its previous closing of Rs336.20 on the BSE.
The scrip opened at Rs340.15 and has touched a high and low of Rs350.05 and Rs321.45 respectively. So far 21,70,384 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs36,975.61cr.
Adani Group Chairman, Mr. Gautam Adani, commented:“We are delighted to embark on this partnership with the Qatar Investment Authority. Together, we will continue to work towards improving the reliability of supply and consumer satisfaction for over 3 million AEML consumers served in Mumbai. We believe this transaction is a significant step in the journey of the Adani Group, marking the start of a long term partnership with QIA”.
QIA Chief Executive Officer, Mr. Mansoor Al-Mahmoud, commented: “We believe that Adani Electricity Mumbai Limited is the best-in-class electricity utility in India and has tremendous potential for growth. We look forward to a long term partnership with the Adani Group, with whom we share an inter-generational perspective on investments and a common vision for the sustainable growth and continued success of AEML”.