LAST UPDATED: March 30, 2021, 4:17 p.m.
New Delhi (Anish Yande): Share prices of Adani Transmission reached a new 52-week high of Rs 924.40 on Tuesday. The Adani Transmission shares increased by 6 percent in early trading on March 30. The shares increased following the signing of agreements for the acquisition of Warora-Kurnool Transmission (WKTL).
Shares of Adani Transmission surge on Tuesday:
The shares of the electric transmission company were trading at Rs 871.40 per share on the previous close on 26 March. Shares surged to Rs 903 per share on Tuesday, following the opening bell. Adani Transmission reached a market cap of Rs 1.01 trillion, at a share price of Rs 924.
Within the past three months, shares of Adani Transmission surged by 113 percent.
Adani Transmission signed the agreements for the acquisition with Essel Infraprojects for the acquisition of WKTL. The acquisition was done at an enterprise value of Rs 3,370 crore.
Following the acquisition, Adani Transmission’s network of electric transmission lines across India would be expanded to 17,200 circuit km.
Warora-Kurnool Transmission Limited would be operating and developing transmission systems with a capacity of 1,750 ckt km. The electric transmission company would be developing transmission lines in Andhra Pradesh, Maharashtra, and Telangana.
Adani Transmission to expand its network across India:
Under the agreement, two inter-state transmission lines linking Warangal and Chilakaluripeta to Kurnool would be developed. The inter-state transmission lines would come with a capacity of 765 kV. Under the agreement, a new 765/400 kV sub-station would also be built & operated at Warangal.
Through the agreement, Adani Transmission would extend its presence across all regions in India. The electric power transmission company has aimed to establish 20,000 ckt km of transmission lines by 2022.
The Central Electricity Regulatory Commission (CERC) has consented to the agreement for 100 percent of equity holding in WKTL.
Adani Transmission would be expanding its network across India for increasing cost optimization. The sharing of resources through the acquisition would improve the company’s position in the market.
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