Adani Energy Acquires Transmission System In MP From REC Subsidiary; Stock Up 8%
Adani Energy Solutions share price advanced 8.2% intraday to Rs 868.95 apiece.
Adani Energy Solutions Ltd. on Thursday announced the acquisition of Mahan Transmission Ltd., a project SPV for development of an intrastate transmission system scheme from REC Power Development & Consultancy Ltd.
MTL will transmit 1,230 megawatt of power from Adani Power Ltd.'s upcoming 1,600 MW expansion units at Mahan in Madhya Pradesh's Singrauli district and feed into state grid, according to an exchange filing.
"This acquisition is proposed to further AESL’s strategy for enhancing value for its shareholders through organic as well as inorganic opportunities," the filing said.
Equity shares of Mahan Transmission are being acquired at a face value of Rs 10 each.
Adani Energy Solutions emerged as the successful developer of this scheme under the tariff-based competitive bidding framework, with RECPDCL acting as the bid process coordinator. RECPDCL is a subsidiary of state-owned REC Ltd.
Adani Energy Share Price Up
Adani Energy Solutions share price advanced 8.2% intraday to Rs 868.95 apiece. The scrip was trading 7.8% higher by 3:00 p.m. The benchmark NSE Nifty 50 was up 0.5%.
The stock has fallen 14% in the last 12 months and risen 7% on a year-to-date basis. Total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 53.
All seven analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 36%.
