Adani Energy Solutions Completes Acquisition of Sangod Transmission Service Stake

Adani Energy Solutions Ltd, previously known as Adani Transmission Ltd, announced on October 6, 2023, that it has successfully secured a 100% ownership stake in Sangod Transmission Service Ltd (STSL) from Rajasthan Rajya Vidyut Prasaran Nigam Ltd. The transaction was executed in full compliance with the terms stipulated in the Share Purchase Agreement. It received unanimous approval from the committee of the Board of Directors during their meeting held on the same day.

Source: https://www.cnbctv18.com/

Adani Energy Solutions Ltd, previously known as Adani Transmission Ltd, announced on October 6, 2023, that it has successfully secured a 100% ownership stake in Sangod Transmission Service Ltd (STSL) from Rajasthan Rajya Vidyut Prasaran Nigam Ltd. The transaction was executed in full compliance with the terms stipulated in the Share Purchase Agreement. It received unanimous approval from the committee of the Board of Directors during their meeting held on the same day.

STSL is actively involved in the development of the Transmission Project, specifically identified as RAJ/PPP – 11 – 2X 400/220kV, featuring a 500MVA Gas-Insulated Substation (GSS) located in Sangod. Additionally, the project includes a 220/132kV, 160 MVA transformer, and the associated transmission line.

This strategic acquisition falls in line with Adani Energy Solutions Ltd's primary objective of augmenting value for its shareholders. The company is committed to achieving this goal by capitalizing on both organic and inorganic growth opportunities. It's worth noting that the acquisition cost for STSL's equity shares was equivalent to their face value of Rs 10 each.

Also Read: Tata Motors' Stock Gains Momentum As JLR Exceeds Expectations In Q2 FY24

STSL, which was established on February 3, 2021, has a presence in India but has not yet commenced its operational activities. Consequently, there is no applicable turnover data available for the preceding three years in this context.

Following this announcement, shares of Adani Energy Solutions Ltd experienced a slight decline, closing at Rs 806.30 per share. This represented a marginal decrease of Rs 1.65, equivalent to 0.20 percent, on the BSE. Adani Energy Solutions' strategic acquisition of STSL underscores its commitment to expansion and diversification, ensuring a brighter future for both the company and its shareholders.