Adani Energy Solutions acquires Essar Transco for ₹1,900 Crore

18 May 2024 , 12:28 AM

After obtaining the required clearances, Adani Energy Solutions Ltd. (AESL) announced on Thursday that it has successfully completed the acquisition of Essar Transco Ltd. for an enterprise value of ₹1,900 Crore.

In June 2022, the firms inked agreements for the transaction. It consists of the 673 circuit km, 400 kV interstate transmission line that connects the Sipat pooling substation in Chhattisgarh with Mahan in Madhya Pradesh.

The acquisition was undertaken by a wholly owned subsidiary, Adani Transmission Step Two Ltd (ATSTL). Following completion, ATSTL and the step-down wholly owned subsidiary Adani Energy now own all of Essar Transco.

According to AESL, the acquisition is consistent with the business’s value-added growth strategy by utilizing both organic and inorganic opportunities. “With this acquisition, the cumulative network of the company will reach 21,182 ckt km, out of which 18,109 ckt km is operational and 3,073 ckt km is under various stages of execution,” it stated.

Adani Energy will be able to achieve synergies in terms of resource sharing and the optimization of operation and maintenance costs thanks to the increased size of operations.

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