Market Update: Adani Transmission acquires MP Power Transmission Package-II from REC

ATL won the project through the Tariff-Based Competitive Bidding process.

ATL, the transmission arm of the Adani Group in an exchange filing said that it has signed a Share Purchase Agreement with REC Power Development and Consultancy Limited on November 1, 2021, for the acquisition of its entire stake in MP Power Transmission Package-II Limited (MPPTPL). ATL won the project through the Tariff-Based Competitive Bidding process.

The cash acquisition would entail 50000 equity shares having a face value of Rs 10 which makes up 100 per cent of the authorized and paid-up capital of the MPPTPL. MPPTPL was incorporated on August 20, 2020, and has not started its operations as yet. The acquisition price was, however, not disclosed in the filing. 

The project, ‘MP Power Transmission Package-II Limited’, consists of more than 1000 ckt km of Transmission Lines and Air Insulated Substations of various voltage levels (220kV and 132kV) in 18 Districts of Madhya Pradesh. With a capex of Rs 1,200 crore, ATL’s execution of the project will strengthen the transmission system in Eastern Madhya Pradesh. ATL will build, own, operate and maintain the transmission project in the state of Madhya Pradesh for 35 years. 

ATL is India’s largest private sector power distribution utility, distributing electricity for over many decades serving about 3 million customers in Mumbai, the commercial capital of India. Moreover, the company is among India’s most technologically sophisticated power transmission companies.  

With this acquisition, the cumulative transmission network of ATL will reach more than 18,300 ckt km of transmission line and more than 33.100 MVA transformation capacity, out of which more than 13,000 ckt km and more than 18.400 MVA are under steady-state operation. 

Winning this project consolidates ATL’s position as India’s largest operating private power transmission company and takes it closer to its target of setting up 20,000 ckt km of transmission lines by 2022. The project will also allow the company to assist in growing measure the Government of India’s quest to achieve Power For All by 2022. 

The shares ATL are trading at Rs 1740.30 at a loss of 1.32 per cent at 1.08 pm today.