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Shares of power distribution company Adani Energy Solutions rose 3.4 per cent to Rs 1,038.30 per share on the BSE. The stock price jumped Wednesday after the company announced the acquisition of electric utility companies.
The company acquired a 100 percent stake in Navinal Transmission and JTL Projects for an undisclosed amount. The company entered into a share purchase agreement with PFC Consulting, acquiring the shares of both companies at a face value of Rs 10 each.
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Both the companies have an authorized share capital and paid-up share capital of Rs 1 lakh.
The acquisitions are proposed as part of Adani Energy Solutions’ strategy to increase value for its shareholders through organic and inorganic opportunities, the company said in a filing.
“Navinal Transmission will aim to implement load of up to 4.5 GW in Mundra region from bulk consumers/distribution license holder and Green Hydrogen. Meanwhile, JTL will aim to extract load of up to 3.6 GW under Phase I in Jamnagar region of Gujarat. [Jamnagar (~750 MW) / Jam Khambhaliya (2850 MW)]”, the company said.
Adani Energy Solutions, headquartered in Ahmedabad, Gujarat, is the transmission and distribution arm of the Adani Group. The company and its subsidiaries are involved in the generation, transmission and distribution of electricity across India. Operating across 14 states, Adani Energy Solutions manages a portfolio of 19,779 circuit kilometers (ckm) of transmission lines and over 46,001 MVA of power transformation capacity, ranging from 132 to 765 kilovolts in HVAC and 500 kilovolts in HVDC systems.
Adani Energy Solutions price history
The company’s shares have underperformed the market year-to-date, as they have fallen 2.2 percent, while gaining 33 percent over the past year. In comparison, the BSE Sensex is up 13 per cent year-to-date and 23.4 per cent year-on-year.
The company has a total market capitalization of Rs 1.23 trillion. Its shares are trading at a price-to-earnings multiple of 325.41 times and an earnings per share of Rs 3.09.
At 2:13 p.m., the company’s share price rose 2.66 per cent to Rs 1,030.85 apiece on the BSE. In comparison, the BSE Sensex rose 0.18 percent to reach the level of 81,673.64.
First publication: October 16, 2024 | 2:23 p.m. STI