Adani Transmission zooms over 3 per cent; heres why!

Adani Transmission Ltd is engaged in the business of generation, transmission, and distribution of power throughout India. It develops, owns & operates transmission lines across the states of Gujarat, Rajasthan, Bihar, Jharkhand, Uttar Pradesh, Maharashtra, Haryana, Chhattisgarh, and Madhya Pradesh.

On Monday, the shares of Adani Transmission Ltd witnessed a gap-up opening with a gain of more than 3 per cent after the company announced that it has signed a share purchase agreement with Essar Power to acquire a 100 per cent stake in Essar Power Transmission Company Limited.  

Essar Power, through a definitive agreement with Adani Transmission, is going to sell its 400 kV Mahan-Sipat transmission line for Rs 1,913 crore.  In the last three years, Essar Power has reduced its debt from a peak level of around Rs 30,000 crore to Rs 6,000 crore. It has also been in the process of curating a green balance sheet around renewable energy, which is in line with its strategy of investing in future-centric businesses that give a superior rate of return within the ESG framework.  

Adani Transmission Ltd is engaged in the business of generation, transmission, and distribution of power throughout India. It develops, owns & operates transmission lines across the states of Gujarat, Rajasthan, Bihar, Jharkhand, Uttar Pradesh, Maharashtra, Haryana, Chhattisgarh, and Madhya Pradesh.   

In spite of being one of the top companies in the power generation and distribution sector, the shares of Adani Transmission Ltd have slumped nearly 30 per cent over the period of one month. On the other hand, considering on a year-to-date basis, the stock has advanced 15 per cent. It will be interesting to watch the impact of this deal on the company’s growth and financial performance. Investors should watch out for this counter for the upcoming sessions.