Adani Transmission m-cap crosses Rs 2 trillion; zooms 104% since Aug

The company is the second Adani Group firm to achieve the feat after Adani Green Energy

Adani Transmission joined the elite club of companies with Rs 2-trillion market capitalization (market-cap) on the BSE, after its share price hit a new high of Rs 1,846.70, up 3 per cent in the intra-day trade, on Monday. The Adani Group company, engaged in the electric utility business, surpassed its previous high of Rs 1,810.80, touched on September 9, 2021. The stock has zoomed 104 per cent since August from a level of Rs 903.75 on July 30, 2021.

With this, Adani Transmission has become the second Adani Group company to achieve the feat after Adani Green Energy. At 10:43 am, Adani Transmission had a market-cap of Rs 2.02 trillion, also the most valuable Adani Group company. Adani Green Energy stands at number two position among the group companies with m-cap of Rs 1.86 trillion, followed by Adani Enterprises (Rs 1.68 trillion), Adani Ports and Special Economic Zone (Rs 1.51 trillion) and Adani Total Gas (Rs 1.49 trillion).

Adani Transmission (ATL) is the transmission and distribution business arm of the Adani Group, one of India's largest business conglomerates. ATL is the country’s largest private transmission company with a cumulative transmission network of ~18,800 ckt km, out of which ~13,200 ckt km is operational and ~5,600 ckt km is at various stages of construction. ATL also operates a distribution business serving about 3 million+ customers in Mumbai.

As India returned to buoyant growth (as witnessed in the last three quarters of the last financial year), ATL continued to be the best placed within India’s transmission and distribution sector to capitalise: by being the lowest cost transmission sector proxy in a growing sector and for its established power distribution competitiveness in India’s financial capital; for possessing a beta (capacity to resist declines in economic growth without Balance Sheet impairment; for a broad-based revenue mix comprising assured and tariff-based competitive bidding (TBCB) revenues.

"The company possesses adequate cash flows for investment in its transmission network; it is fully funded for its significant investment in Adani Electricity Mumbai Limited (AEML) distribution business, enhancing medium-term project and revenue visibility," AEL said in financial year 2020-21 annual report.

With Mumbai’s electricity demand expected to touch 5,000 MW across the foreseeable future and transmission capacity at only 2700 MW, AEML expects to draw additional power from the national grid to the city. The company applied for licenses with Maharashtra Electricity Regulatory Commission (MERC) to commence two key projects to enhance electricity availability to Mumbai by 2,000 MW, it added.

The company further said it intends to significantly increase the proportion of renewable energy within its delivered electricity mix – to 30 per cent by FY 2022-23, one of the highest proportions of renewable energy across any large urban cluster in India. In accordance with the Central government’s policy, the company invited competitive bidding for supplying renewable power and secured availability of 700 MW.