Adani Energy Solutions Explained

Adani Energy Solutions Limited
Type:Public
Isin:INE931S01010
Founder:Gautam Adani
Location City:Shantigram, Khodiyar, Ahmedabad
Location Country:India
Industry:Electric utility
Products:Electricity transmission and distribution
Revenue: [1]
Revenue Year:2024
Income Year:2024
Net Income Year:2024
Assets Year:2024
Equity Year:2024
Num Employees:4,959 (2024)
Parent:Adani Group
Subsid:Adani Electricity Mumbai Limited
Footnotes:[2]

Adani Energy Solutions Ltd, formerly known as Adani Transmission Ltd,[3] is an electric power transmission company headquartered in Ahmedabad.[4] Currently, it is one of the largest private sector power transmission companies operating in India.[5] [6] As of July 2020, the company operates a cumulative network of 12,200 circuit kilometers, and more than 3,200 circuit kilometers are under various stages of construction.[7]

History

Adani Transmission was founded by Gautam Adani in December 2015 after separating the decade-old transmission business from Adani Enterprises. At the time of the founding, the company became the primary custodian for more than 3800 circuit kilometers of transmission lines originating from the Mundra Thermal Power Station, connecting Mundra–Dehgam, Mundra–Mohindergarh and Tirora–Warora.

In July 2023, the company was renamed to Adani Energy Solutions[8] to better reflect its suite of products and services.[9]

Mergers and acquisitions

In 2015, ATL acquired three wholly owned subsidiaries of PFC Consulting, which itself is a subsidiary of Power Finance Corporation – the Chhattisgarh-WR transmission line, Sipat transmission line connecting with Sipat Thermal Power Station and Raipur-Rajnandgaon-Warora transmission line.[10]

In 2016, ATL further acquired the GMR Group's transmission assets in the state of Rajasthan — the Maru Transmission Services Ltd (MTSL) and Aaravalli Transmission Services Ltd (ATSL).[11] In the same year, the company also acquired Reliance Infrastructure's transmission assets of the Western Region System Strengthening Scheme (WRSSS).[12]

In December 2017, the company obtained a share purchase agreement (SPA) for the acquisition of the Mumbai Generation Transmission & Distribution (GTD) business from Reliance Infrastructure.[13] [14] In March 2018, the shareholders of Reliance Infrastructure approved the sale of its power business for Rs. 18,800 crore to Adani Transmission Limited.[15] [16] This resulted in the founding of Adani Mumbai Electricity Limited, a 100% wholly owned subsidiary of ATL which currently serves more than 3 million consumers across a license area of approximately 400 square kilometers in the city of Mumbai.[17]

In February 2019, ATL acquired KEC International's Bikaner-Sikar transmission asset in Rajasthan.[18] [19] [20] [21] In September of the same year, the company acquired PFC Consulting's Bikaner-Khetri transmission project in Rajasthan.[22] [23] [24]

In July 2020, the company signed definitive agreements with Kalpataru Power Transmission (KPTL) for acquiring Alipurduar Transmission.[25] [26] [27] [28] adding 650 circuit kilometers in its network from the state of Bihar and West Bengal.

In May 2024, the company announced its acquisition of Essar's Mahan-Sipat transmission assets for Rs. 1,900 crore through its wholly owned subsidiary Adani Transmission Step Two (ATST). This move will consolidate its presence in Central India with 4 operating assets of 3373 ckt km in the region [29]

Controversies

Allegations of stock manipulation

In January 2023, Hindenburg Research published the findings of a two-year investigation claiming that Adani had engaged in market manipulation and accounting malpractices; Hindenburg also disclosed that it was holding short positions on Adani Group companies.[30] [31] [32] [33] Bonds and shares of companies associated with Adani experienced a decline in value after the accusations.[34] [35] Adani denied the fraud allegations as unfounded and ill intentioned.[36]

Notes and References

  1. Web site: Adani Transmission Ltd. Financials. bseindia.com.
  2. Web site: Adani Transmission Limited. 2023-04-13 . Adani Group.
  3. News: Adani Transmission is now renamed to Adani Energy Solutions Ltd . 26 September 2023 . Mint . 27 July 2023 . en.
  4. News: Adani Transmission Ltd.. Business Standard India. 2020-11-27.
  5. Book: Linking Up: Public-Private Partnerships in Power Transmission in Africa. World Bank. 2017. Washington DC. 83.
  6. Web site: Adani Transmission Receives LOI for Transmission Project in Maharashtra. 2020-11-27. www.saurenergy.com.
  7. Web site: Adanis buy power asset in Bengal. 2020-11-27. www.telegraphindia.com.
  8. Web site: 2023-07-27 . Adani Transmission renames itself as Adani Energy Solutions . 2023-08-31 . Moneycontrol . en.
  9. News: 2023-08-01 . Anil Sardana on why Adani Transmission was renamed Adani Energy Solutions, expansion, capex plans & more . The Economic Times . 2023-08-31 . 0013-0389.
  10. Web site: Adani Transmission acquires three subsidiaries from PFC Consulting. 2020-11-27. www.indiainfoline.com. en.
  11. Web site: Bureaus. Our. Adani inks agreement to acquire stake in GMR Energy's transmission projects. 2020-11-27. @businessline. July 2016 . en.
  12. Web site: Adani arm completes buy of RInfra's western region transmission assets. 2020-11-27. @businessline. November 2017 . en.
  13. Web site: Dutta. Sanjay. 22 December 2017. Reliance Energy: Adani acquires Mumbai business of debt-hit Reliance Energy for Rs 19,000 crore - Times of India. 2020-11-27. The Times of India. en.
  14. News: Adanis buy Reliance Infrastructure's Mumbai power business. The Economic Times. 2020-11-27.
  15. News: Reliance Infra's sale of Mumbai power ops to Adani gets regulatory nod. 2020-11-27. The Economic Times. 28 June 2018 . Prasad . Rachita .
  16. News: Reliance Infrastructure to sell Mumbai power business to Adani Transmission for Rs 18,800 crore. The Economic Times. 2020-11-27.
  17. Web site: Adani takes over Reliance Infrastructure's Mumbai energy business for Rs 18,800 crore. 2020-11-27. The New Indian Express. 29 August 2018 .
  18. News: Singh. Sarita C.. Adani Transmission completes acquisition of KEC International's project for Rs 228 crore. The Economic Times. 2020-11-27.
  19. Web site: KEC International completes transmission asset sale to Adani for ₹227 crore. 2020-11-27. @businessline. 8 February 2019 . en.
  20. Web site: PTI. 2018-11-05. Adani arm to buy KEC International's power transmission unit. 2020-11-27. mint. en.
  21. News: Umarji. Vinay. 2019-02-08. Adani closes KEC's Transmission asset acquisition deal, buys 100% stake. Business Standard India. 2020-11-27.
  22. Web site: Energy News Monitor Volume XVI; Issue 16. 2020-11-27. ORF. en-US.
  23. Web site: www.ETEnergyworld.com. Adani Transmission acquires Bikaner-Khetri project in Rajasthan - ET EnergyWorld. 2020-11-27. ETEnergyworld.com. en.
  24. Web site: Adani Transmission acquires Bikaner-Khetri project in Rajasthan. 2020-11-27. Moneycontrol.
  25. News: Pillay. Amritha. 2020-07-06. Adani Transmission to buy Kalpataru's transmission asset for Rs 1,286 cr. Business Standard India. 2020-11-27.
  26. Web site: Adani Transmission inks pact with KPTL to buy Alipurduar Transmission. 2020-11-27. The New Indian Express. 6 July 2020 .
  27. News: 2020-07-06. Adani Transmission to acquire Alipurduar Transmission from Kalpataru. en-IN. The Hindu. 2020-11-27. 0971-751X.
  28. Web site: PTI. Adani Transmission inks pact with Kalpataru Power to buy Alipurduar Transmission. 2020-11-27. @businessline. 6 July 2020 . en.
  29. Web site: Adani Energy completes acquisition of Essar's Mahan-Sipat transmission assets for Rs 1,900 cr. 2024-05-16. Moneycontrol. en.
  30. Web site: Adani Group: How The World's 3rd Richest Man Is Pulling The Largest Con In Corporate History . January 24, 2023 . hindenburgresearch.com . . January 24, 2023 .
  31. News: Thomas . Chris . Kalra . Aditya . Hindenburg shorts India's Adani citing debt, accounting concerns; shares plunge . 25 January 2023 . . 25 January 2023 . en.
  32. News: Sorkin . Andrew Ross . Mattu . Ravi . Warner . Bernhard . Kessler . Sarah . Merced . Michael J. de la . Hirsch . Lauren . Livni . Ephrat . A Short Seller Takes Aim at an Indian Corporate Giant . 25 January 2023 . . 25 January 2023.
  33. News: Lockett . Hudson . Adani shares take $10.8bn hit after Hindenburg bets against group . 25 January 2023 . . 25 January 2023.
  34. News: Lee . Jihye . Adani shares fall as short seller firm Hindenburg announces short position . 25 January 2023 . . 25 January 2023 . en.
  35. News: Kay . Chris . Vishnoi . Abhishek . Joshi . Ashutosh . Hindenburg Targets Asia's Richest Man, Triggering Adani Selloff . 25 January 2023 . . 25 January 2023 . en.
  36. News: Madhok . Diksha . Asia's richest man slams short-seller's fraud claims as 'baseless' and 'malicious' . 25 January 2023 . en . CNN Business . Atlanta, Georgia, USA . 25 January 2023.

This article is licensed under the GNU Free Documentation License. It uses material from the Wikipedia article "Adani Energy Solutions".

Except where otherwise indicated, Everything.Explained.Today is © Copyright 2009-2024, A B Cryer, All Rights Reserved. Cookie policy.