Shares of Adani Transmission surged 14 per cent to Rs 255 on the BSE on Tuesday after the company said it has signed a share purchase agreement and completed the acquisition of the WRSS XXI (A) Transco Limited, incorporated by REC Transmission Projects Company. The stock was trading close to its 52-week high level of Rs 256, touched on November 28, 2018.
“The project “WRSS XXI (A) Transco Limited” consists of approximately 272 ckt kms of 765kV line along with associated transmission system. This project is primarily being constructed to strengthen the Transmission System for relieving over loadings observed in Gujarat Intra-State System due to renewable energy Injections in Bhuj PS,” Adani Transmission said in a statement. The acquisition was made for an undisclosed amount.
With this acquisition, Adani Transmission's cumulative transmission network will reach more than 14,000 circuit kms (ckt kms) of transmission line and more than 23,000 Mega Volt Amp (MVA) transformation capacity. Out of this, more than 11,000 ckt kms and more than 18,000 MVA are under the steady-state operation, it added.
At 10:49 am, the stock was trading 9 per cent higher at Rs 245 on the BSE, as compared to a 0.53 per cent rise in the S&P BSE Sensex. Trading volumes on the counter jumped over 7-fold with a combined 828,947 shares changing hands on the BSE and NSE till the time of writing of this report.