Adani Energy Solutions (AESL) announced on Thursday the successful completion of its acquisition of Essar Transco Ltd (ETL), marking a significant milestone in its expansion strategy. The acquisition includes the operational Mahan-Sipat transmission project, positioning AESL as a key player in the Indian transmission sector.
Formerly known as Adani Transmission Limited, AESL had entered into a share purchase agreement in June 2022 to acquire the transmission project owned and operated by Essar Power Transmission Ltd at an enterprise value of ₹1,913 crore.
In a stock exchange filing, Adani Energy Solutions confirmed that Essar Transco Ltd has now become a wholly-owned subsidiary of Adani Transmission Step Two Limited (ATSTL), a step-down wholly-owned subsidiary of AESL.
With the completion of this acquisition, AESL’s total network will expand to 21,182 ckt kms, reinforcing its position as a leading player in the transmission and distribution sector.
The Mahan-Sipat transmission project comprises an operational 400 kV inter-state transmission line linking Mahan in Madhya Pradesh to the Sipat pooling substation in Chhattisgarh, covering a line length of 673 ckt kms. Operating under the Central Electricity Regulatory Commission (CERC) regulated return framework, the project was commissioned on September 22, 2018.
The acquisition aligns with Adani Energy Solutions’ value-added growth strategy, which encompasses both organic and inorganic growth opportunities. By integrating the Mahan-Sipat transmission project into its portfolio, AESL aims to derive synergies in terms of operational and maintenance cost optimization, as well as shared resources.
AESL emphasized that the acquisition strengthens its position as the largest private sector transmission and distribution company in India. With a total network of 21,182 ckt kms, comprising 18,109 ckt kms of operational lines and 3,073 ckt kms under various stages of execution, AESL is poised to drive further growth and innovation in the Indian energy landscape.
Adani Energy Solutions shares were trading marginally lower, reflecting investor sentiment amidst the completion of this transformative acquisition. As AESL continues to consolidate its position in the transmission and distribution sector, investors remain optimistic about the company’s long-term growth prospects.
