Qatar Investment Authority completes Adani Electricity Mumbai deal

Adani Transmission Limited (ATL) on Tuesday announced that Qatar Investment Authority (QIA) has completed acquisition of 25.10 per cent stake in Adani Electricity Mumbai Limited (AEML) from ATL along with an investment in shareholder subordinated debt in AEML on February 10, 2020. 

The total QIA investment in AEML is Rs 3,220 crore (approximately $452 million), which includes equity consideration of approximately Rs 1,210 crore (nearly $170 million) and shareholder subordinated debt of $282 million (approximately Rs 2,010 crore).

The definitive agreements for the transaction were signed on December 11, 2019, and all the requisite approvals were received subsequently.

AEML has recently completed an investment grade, $1 billion bond issuance, the first by a private integrated utility from India. The issue generated significant interest from international investors and was oversubscribed by 5.9 times.  

Entire equity proceeds of 25.1 per cent stake sale in AEML has been used by ATL towards return of the perpetual to the tune of Rs 1,209.62 crore in favour of contributory promoter entity. Perpetual was infused by the promoter entity to acquire AEML. Post return of Rs 1,209.62 crore, promoter perpetual outstanding has got reduced to Rs 2,544.38 crore.

AEML is the licensee for an integrated power distribution, transmission and generation business that currently serves more than 3 million consumers across a licence area of approximately 400 square kilometers in the city of Mumbai, the world’s seventh largest city by size of population. AEML’s market share of Mumbai is approximately 87 per cent by license area, 67 per cent by consumers served and 55% by electricity supplied.