Adani Energy Solutions Acquires 100% In Sangod Transmission Service Via Cash

Adani group firm Adani Energy Solutions has said that it has acquired 100% Equity Shares of Sangod Transmission Service Limited ("STSL") from Rajasthan Rajya Vidyut Prasaran Nigam Limited. According to the company the purchase has been made in a manner consistent with the Share Purchase Agreement and other applicable consents.

The proposal was approved by the committee of the Board of Directors of the Company at its meeting held on October 6, 2023, starting at 4:00 p.m. and concluding at 5:00 p.m. The acquisition deal involves complete cash consideration. The cost of acquisition for the equity shares of STSL was at their face value of Rs 10 each.

According to the company, the acquisition is proposed to further AESL's strategy for enhancing value for its shareholders through organic as well as inorganic opportunities. It said, "STSL will aim to establish Transmission Project - RAJ/PPP - 11 - 2X 400/220kV, 500MVA GSS at Sangod along with 220/132kV, 160 MVA transformer and associated transmission line.

Sangod Transmission Service Limited ("STSL") has an Authorised and Paid-Up Share Capital of Rs. 5 Lakh each.

STSL, incorporated on February 3, 2021, has a presence in India. However, it is yet to commence business operations.

The Adani group firm already has power transmission networks in other parts of Rajasthan, including Bikaner to Sikar, Suratgarh-Bikaner, and Barmer.

The share price of Adani Energy Solutions Ltd closed 0.20% lower at 806.30 per share on Friday. The stock has gained 210% in the last one year.