Adani Transmission jumped 5.31% to Rs 383.95 after the company reported its acquisition of Alipurduar Transmission from Kalpataru Power Transmission for an enterprise value of around Rs 1300 crore. Adani Transmission (ATL), India’s largest private sector power transmission company, has obtained 49% stake in Alipurduar Transmission from Kalpataru Power Transmission (KPTL) on the condition to acquire the balance 51% after obtaining requisite regulatory and other approvals and in a manner prescribed by the transmission service agreement. The share acquisition is in accordance with the definitive agreements signed in July 2020.
The acquisition is in lieu of ATL’s strategy to increase the value for its stakeholders, through organic as well as inorganic opportunities. With this acquisition, the cumulative network of ATL will span over more than 15,400 ckt km, out of which more than 12,200 ckt km (including this asset) is operational and more than 3,200 ckt km is currently under various stages of execution.
Kalpataru Power Transmission Limited (KPTL) is amongst the largest players at the forefront of the global power transmission and infrastructure EPC space. With proven experience and expertise of over three decades, KPTL today has expanded its business over 50 countries, executing marquee projects with comprehensive capabilities that deliver complete solutions covering design, testing, fabrication, erection and construction of transmission lines, oil and gas infrastructure and railways projects on a turnkey basis.
Alipurduar Transmission is in charge of transmission lines aggregating to around 650 ckt km in West Bengal and Bihar. Element 1 of the project including the transmission line from Alipurduar to Siliguri was commissioned on 20 Jan 2020 and Element 2 of the project consisting of the transmission line from Kishanganj to Darbhanga was commissioned on 6 March 2019. Meanwhile, Kalpataru Power Transmission slipped 0.87% to Rs 313.45 on BSE. The scrip was moving between the range of Rs 312 to Rs 138.25 so far.
Adani Transmission’s consolidated net profit dropped 7.1% to Rs 214.13 crore on 16.9% decline in net sales to Rs 2,156.19 crore in Q2 September 2020 over Q2 September 2019.