Adani Energy Solutions buys Essar Transco for ₹1,900 crore

Industry:    7 months ago

Adani Energy Solutions Ltd (AESL) said Thursday it has completed the acquisition of Essar Transco Ltd for an enterprise value of ₹1,900 crore after securing necessary approvals.

The companies had signed agreements for the deal in June 2022. It comprises the fully operational 400 kV, 673 circuit kms inter-state transmission line linking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh.

Adani Transmission Step Two Ltd (ATSTL), a wholly owned subsidiary, made the acquisition. Post completion, Essar Transco has become a wholly owned subsidiary of ATSTL and the step-down wholly owned subsidiary Adani Energy.

The acquisition is in line with the company’s value-added growth strategy by tapping organic as well as inorganic opportunities, according to AESL. “With this acquisition, the cumulative network of the company will reach 21,182 ckt km, out of which 18,109 ckt km is operational and 3,073 ckt km is under various stages of execution,” it added.

The expanded scale of operations will allow Adani Energy to gain synergies in terms of optimising operation and maintenance costs and resource sharing.

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