Shares of Adani Energy Solutions Ltd (AESL), earlier known as Adani Transmission rose over 8% on Thursday after the Adani Group firm said it has executed a share purchase agreement (SPA) with REC Power Development and Consultancy Limited (RECPDCL) for acquiring 100% equity stake in Mahan Transmission Limited (“MTL”).
Adani Energy Solutions shares rose 8.18% to Rs 868.70 in the current session against the previous close of Rs 802.90 on BSE. Market cap of the firm climbed to Rs 1.06 lakh crore.
Total 3.87 lakh shares of Adani Energy Solutions changed hands amounting to a turnover of Rs 32.64 crore.
Adani Energy Solutions shares have a one-year beta of 1.7, indicating high volatility during the period.
In terms of technicals, the relative strength index (RSI) of Adani Energy Solutions stands at 62, signaling it's trading neither in the overbought zone. Adani Energy Solutions stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.
"The acquisition is proposed to further AESL’s strategy for enhancing value for its shareholders through organic as well as inorganic opportunities. MTL will evacuate 1,230 MW of power from Adani Power’s upcoming 1,600 MW expansion units at Mahan in Singrauli district and feed into the state grid," said the Adani Group firm.
On March 21, the firm said it has won a power transmission project in Gujarat, which will supply green electrons for manufacturing Green Hydrogen and Green Ammonia in Mundra, Gujarat. The project which will cost Rs 2,800 crore, will be delivered in 36 months.
Adani Energy Solutions is the country’s largest private transmission company, with a presence across 16 states of India and a cumulative transmission network of 19,800 ckm and 53,000 MVA transformation capacity. In its distribution business, Adani Energy Solutions serves more than 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ.