Adani Energy Solutions Soars 6% as Transmission Company Acquisition Spurs Growth

18 Aug 2023 , 02:35 PM

Adani Energy Solutions Limited (AESL), formerly known as Adani Transmission, experienced a 6 % surge in its shares on August 18 following the acquisition of a transmission company from Megha Engineering & Infrastructures Ltd. In a regulatory filing, Adani Transmission confirmed the completion of definitive documents with Megha Engineering & Infrastructures Limited for the acquisition of KPS 1 Transmission Limited.

The acquisition involves the KPS1 Project, which encompasses the implementation of the KPS1-Khavda PS GIS (KPS2) 765 kV double circuit line and the augmentation of Khavda PS1.

AESL stated that this acquisition aligns with its strategy to enhance value for shareholders through both organic and inorganic opportunities. KPS1 aims to execute the KPS1-Khavda PS GIS (KPS2) 765 kV double circuit line and the augmentation of Khavda PS1.

KPS1 currently possesses an authorized and paid-up share capital of Rs 5 lakh each but has not commenced operations yet, resulting in no turnover. The transaction’s total amount was not disclosed by Adani, although it confirmed that it will be a cash transaction completed within 15 days.

In the previous month, AESL reported a consolidated net profit of Rs 175 crore in the June 2023 quarter, representing a 6 % decline from the Rs 186 crore achieved in the same quarter the previous year.

Within different segments, revenue from the transmission business increased by 11 % to Rs 926 crore, while revenue from the GTD (Generation, Transmission, and Distribution) business witnessed a 24 % year-on-year increase, reaching Rs 2,738 crore for the reviewed quarter.

For feedback and suggestions, write to us at [e-mail]