-         Adani Energy Solutions Limited(AESL), through its wholly-owned subsidiary Adani Transmission Step-Two Limited(ATSTL), acquired a 100 per cent stake in Essar Transco Limited, which housesoperational Mahan-Sipat transmission assets for an Enterprise Value of INR1,900-crores.

-         This acquisition will add 673ckt kms, 400 kV inter-state transmission line taking the cumulative network ofAESL to more than 21,000 ckt kms.

-         Contemporaneous to theacquisition, ATSTL raised financing at the most competitive terms setting a newbenchmark for financing the operational assets under AESL.

Adani EnergySolutions Ltd (AESL), the largest private transmission and distribution companyin India with a growing smart metering portfolio, has acquired 100 per centstake in Essar Transco Limited after obtaining requisite regulatory and otherapprovals for an Enterprise Value of INR1,900-crores. The share acquisition ispursuant to definitive agreements signed in June, 2022.

The acquisitioncovers fully operational 400 kV, 673 ckt kms inter-state transmission linelinking Mahan in Madhya Pradesh to Sipat pooling substation in Chhattisgarh. Theproject operates under the Central Electricity Regulatory Commission (CERC)regulated return framework and was commissioned on 22 Sep 2018.

In accordancewith AESL’s capital management philosophy, ATSTL also raised a financing at themost competitive terms. This establishes a new benchmark for AESL to raisecapital and unlocks the lower cost debt for its operational assets.

The financingexemplifies the quality of AESL’s utility cashflows with a long-term licenselife, well supported through stable regulatory framework. MUFG Bank Ltd. is thesole lender for the financing.

The acquisitionof Mahan-Sipat transmission network will consolidate AESL’s presence in centralIndia with four operating assets having 3,373 ckt km in the region.