Adani Energy Solutions acquires Sangod Transmission Service; stock falls 2%

Shares of Adani Energy Solutions Ltd, formerly known as Adani Transmission Ltd, fell over 2 percent on October 9 after it acquired Sangod Transmission Service Ltd (STSL). The Adani Group company acquired 100 percent equity shares of Sangod from Rajasthan Rajya Vidyut Prasaran Nigam Ltd. The cost of acquisition for the equity shares of STSL was at their face value of Rs 10 each.

This strategic acquisition aligns with Adani Energy Solutions Ltd's overarching goal of enhancing value for its shareholders through a combination of organic and inorganic growth opportunities, the company said. The acquisition was executed in accordance with the terms of the Share Purchase Agreement and received approval from the committee of the Board of Directors at the company's meeting last week.

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STSL, incorporated on February 3, 2021, is a presence in India. However, it is yet to commence business operations. The STSL project includes the implementation of Transmission Project – RAJ/PPP – 11 – 2X 400/220kV, 500MVA GSS at Sangod along with 220/132kV, 160 MVA transformer and associated transmission line.