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Adani Green Energy surges over 10% on acquisition of 10 renewable energy projects

Share price of Adani Green Energy Limited, one of the largest renewable power generation companies in India, surged over 10% on Friday after the power giant announced it has signed an agreement to acquire 205 MW solar assets.

twitter-logoBusinessToday.In | August 30, 2019 | Updated 15:46 IST
Adani Green Energy surges over 10% on acquisition of 10 renewable energy projects
Shares of Adani Green Energy closed 5.3% higher at Rs 45.65 on the BSE.

Share price of Adani Green Energy Limited, one of the largest renewable power generation companies in India, surged over 10% on Friday after the power giant announced it has signed an agreement to acquire 205 MW solar assets.

Shares of Adani Green Energy formed a gap up chart pattern with the opening bell today to trade at Rs 46 apiece, up almost 5.07% from its Thursday close of Rs 43.60. Later the stock climbed 10.50% and touched an intraday high of Rs 47.90 per share on the BSE.

Overall 1.43 lakh shares and 13.84 lakh shares are currently changing hands on the bourses BSE and NSE, respectively.

"Adani Green Energy Limited (AGEL), today signed a securities purchase agreement for the acquisition of 205 MW operating solar assets of Essel Green Energy Private Limited (EGEPL) and Essel Infraprojects Limited (EIL)," the company said in a BSE filing.

Adani Green Energy informed the exchanges that the company has entered into a securities purchase agreement for acquisition of 100 % equity interest in 10 companies, namely Essel Bagalkot Solar Energy, Essel Gulbarga Solar Power, Essel Urja, KN Bijapura Solar Energy, KN Indi Vijayapura Solar Energy, KN Muddebihal Solar Energy, KN Sindagi Solar Energy, PN Clean Energy, PN Renewable Energy and TN Urja. These companies are the subsidiaries of Essel Green Energy and Essel Infraprojects,

As per the regulatory filing, AGEL's first acquisition of operating assets is at an enterprise valuation of approximately Rs 1,300 crore. The 205 MW operating solar assets of Essel Group are located in the states namely, Punjab, Karnataka and Uttar Pradesh.

"All the assets have long term Power Purchase Agreements (PPAs) with various state electricity distribution companies. The portfolio is relatively young with average remaining PPA life of approximately 22 years," the filing added.

Jayant Parimal, CEO of Adani Green Energy Ltd., said, "The acquisition of 205 MW of operating solar assets strengthens Adani Green Energy's position as one of India's premier renewable power producers, with a total portfolio of 5.5 GW, of which 2.5 GW is operational, and the remaining is to be operationalised over the next 2 years."

"It expands our footprint in states where we already have a presence, and with our strong operational expertise, will deliver significant value for our shareholders," he later added.

Shares of Adani Green Energy closed 6.57% higher at Rs 46.20 on the BSE.

Edited by Rupa Burman Roy

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