Adani Energy stock rises over 3% on acquiring two electric utility firms

Shares of power distribution company, Adani Energy Solutions rose as much as 3.4 per cent at Rs 1,038.30 per share on the BSE. The stock price jumped on Wednesday after the company announced acquisition of electrical utilities companies.

The company acquired a 100 per cent 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 the companies at a face value of Rs 10 each. 

Both companies have an authorised share capital and paid-up share capital of Rs 1 lakh. 

The acquisitions are proposed to further Adani Energy Solutions strategy for enhancing value for its shareholders through organic as well as inorganic opportunities, the company said in a filing

“Navinal Transmission will aim to implement to drawl of up to 4.5 GW load in Mundra area from bulk consumers/ Distribution licensee and Green Hydrogen. Meanwhile JTL will aim to drawl of up to 3.6 GW load under Phase-I in Jamnagar area 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 power across India. Operating in 14 states, Adani Energy Solutions manages a portfolio of 19,779 circuit kilometres (ckm) of transmission lines and over 46,001 MVA of power transformation capacity, ranging from 132 to 765 kilovolts in HVAC systems and 500 kilovolts in HVDC systems.

Adani Energy Solutions share price history

The company’s stock has underperformed the market year to date as it has fallen 2.2 per cent, while gaining 33 per cent in the last one year. In comparison BSE Sensex has risen 13 per cent year to date and 23.4 per cent in a year. 

The company has a total market capitalisation of Rs 1.23 trillion. Its shares are trading at a price to earnings multiple of 325.41  times and at an earning per share of Rs 3.09. 

At 2:13 PM, the stock price of the company advanced by 2.66 per cent at Rs 1030.85 a piece on the BSE. By comparison, the BSE’s Sensex was up 0.18 per cent to 81,673.64 level.