– Adani Energy Solutions (AESL) has acquired a 100% stake in Essar Transco for Rs19bn ($227.5m)
– The acquisition includes a 400kV transmission line and a 673ckm inter-state transmission line
– AESL now has a total transmission network of 21,182ckm with transformation capacity of 57,011 MVA
Adani Energy Solutions (AESL), a part of Indian billionaire Gautam Adani’s conglomerate, has acquired a 100% stake in Essar Transco in a transaction valued at Rs19bn ($227.5m). This acquisition includes a fully operational 400kV transmission line running between two Indian states. The purchase was made through AESL’s subsidiary, Adani Transmission Step-Two (ATSTL), following initial agreements in June 2022. This move is expected to expand AESL’s presence in central India, adding to its four operational assets in the region.
The company’s strategy aims to increase capacity and operational efficiencies through such acquisitions. AESL raised financing at competitive terms to support the acquisition, setting a benchmark for capital raising in the region. The company’s utility cash flows are supported by a stable regulatory framework, positioning it as a leading private transmission company in India. AESL’s transmission network consists of 21,182 circuit kilometers with a transformation capacity of 57,011 megavolt-amps. The company also serves over 12 million consumers in Mumbai and Mundra SEZ in its distribution sector.