Adani Transmission stock rises 4% amid market crash

Shares of Adani Transmission rose nearly 4 percent in early trade after the Adani Group firm inked a definitive agreement with Essar Power Ltd. (EPL) for acquiring one of its two electricity transmission lines operated by Essar Power Transmission.

Adani Transmission stock climbed 3.89 per cent to Rs 2029 in early trade against the previous close of Rs 1,953 on BSE.

The stock opened with a gain of 3.18 per cent at Rs 2,015 today.

The share trades higher than 200 day moving averages but lower than 5-day, 20-day, 50-day and 100-day moving averages. The stock has gained 24.57 percent in a year and risen 15.42 percent since the beginning of this year.

Total 3683 shares changed hands amounting to a turnover of Rs 73.94 lakh on BSE. Market cap of the firm rose to Rs 2.2 lakh crore.

The large-cap stock hit a 52-week high of Rs 3,000 on April 12, 2022 and a 52-week low of Rs 860 on August 2, 2021.

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The sale is a part of deleveraging strategy following which Essar has repaid over Rs 1.8 lakh crore to banks and financial institutions in the last three years - the largest debt repayment in its history. In a statement, Essar Power said it ''has entered into a definitive agreement with Adani Transmission Ltd to sell one of its two transmission lines for Rs 1,913 crore''.

Essar Power Transmission Company Ltd (EPTCL), a unit of Essar Power, has 465-km transmission lines across three Indian states. The asset transacted is an operational 400 kV inter-state transmission line linking Mahan to the Sipat pooling substation.

The project operates under the CERC regulated return framework.

Anil Sardana, MD & CEO, Adani Transmission said, "The acquisition of Essar's transmission asset will consolidate ATL's presence in central India. With this acquisition, ATL is well on the path to achieving its 20,000 ckt kms target before time. We continue to remain at the forefront of grid stability and provide sustainable, reliable, and affordable energy solutions while creating long-term sustainable value for our stakeholders."

Meanwhile, Sensex fell 382 points to 55,386 and Nifty lost 116 points to 16,468 in early trade.