Adani Green surges 10% as it inks pact with Essel Infra to buy solar assets

Shares of Adani Green advanced as much as much 10.49 per cent to Rs 47.90 apiece on the BSE in the early morning deals on Friday, a day after the company announced it will acquire Essel Infra's 205 megawatt (Mw) of solar assets for Rs 1,300 crore.

The assets are located in Punjab, Karnataka, and Uttar Pradesh. All these assets have long-term power purchase agreements with various state electricity distribution companies, the company said.

Adani Green called this its first acquisition of operating assets. “The acquisition of 205 Mw of operating solar assets strengthens Adani Green Energy’s position as one of India’s premier renewable power producers, with a total portfolio of 5.5 gigawatt (Gw), of which 2.5 Gw is operational, and the remaining is to be operationalised over the next two years,” said Jayant Parimal, chief executive officer for Adani Green Energy. CLICK TO READ FULL ARTICLE

“Our asset divestment process is within the purview of the agreed timelines with our esteemed lenders. The sale of the group’s solar assets to AGEL is yet another positive step taken in this direction,” an Essel group spokesperson said.

The sale of solar assets is expected to further reduce promoter debt for the group, which was at Rs 6,776 crore. In July, Essel said it had offloaded 11 per cent of the nearly 36 per cent promoter stake in Zee Entertainment Enterprises to existing investor Invesco Oppenheimer for Rs 4,224 crore.

At 10:46 am, the stock was trading over 5.50 per cent higher at Rs 45.80 apiece on the BSE. In comparison, the S&P BSE Sensex was quoting 32 points or 0.09 per cent lower at 37,037.