Qatar Investment Authority completes investment in Adani Electricity Mumbai Ltd

Adani Transmission Ltd (ATL) said on Tuesday that Qatar Investment Authority (QIA) has completed the acquisition of 25.1 per cent stake in Adani Electricity Mumbai Ltd (AEML) from ATL along with an investment in shareholder subordinated debt in AEML.

The total QIA investment in AEML is Rs 3,220 crore which includes equity consideration of Rs 1,210 crore and shareholder subordinated debt of Rs 2,010 crore.

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

AEML has recently completed an investment grade, one billion dollar bond issuance, a 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 three million consumers across a license area of 400 sq km in the city of Mumbai, the world's seventh largest city by the size of population.

AEML's market share of Mumbai is 87 per cent by license area, 67 per cent by consumers served and 55 per cent by electricity supplied.

Qatar Investment Authority is the sovereign wealth fund of Qatar. It was founded in 2005 to strengthen the country's economy by diversifying into new asset classes.