Adani Energy shares in focus as arm signs 2,500 MW power deal with MSEDCL

Shares of Adani Energy Solutions Ltd are in focus on Wednesday after India's largest private transmission and distribution company announced that Powerpulse Trading Solutions Limited (PTSL), a wholly-owned subsidiary, would supply 2,500 MW Round-the-Clock (RTC) power for a period of 25 years from the scheduled commencement date of supply. The receipt of this Letter of Award (LOA) was announced earlier by Adani Power Ltd (APL) on April 2.

In a filing to BSE, Adani Energy said Adani Power has assigned to PTSL all rights and obligations arising from the LOA issued by Maharashtra State Electricity Distribution Company Ltd (MSEDCL). Consequent to the aforesaid agreement, PTSL entered into a Power Purchase Agreement (PPA) with MSEDCL on September 8 in accordance with the aforesaid LOA.

"The PPA is aligned with PTSL’s core competencies in multi-source energy aggregation, power portfolio management, and power supply optimisation for its customers. The transaction is expected to further strengthen PTSL's power supply portfolio and reinforce its position in the energy solutions business," Adani Energy said.

Last month, Adani Energy won a key transmission project for evacuation of renewable energy generated in Karnataka to major load centres in Maharashtra. The project, which entails an estimated capital expenditure of Rs 4,700 crore, will also support the growing pumped storage ecosystem in the Satara, Pune and Mumbai Metropolitan Region (MMR).

The stock was in news last week after the company informed stock exchanges that investor GQG Partners has further cut its stake in the company to 3.46 per cent as of August 31 from 4.14 per cent at the end of June quarter.  This marks at least the second straight quarter of selling by GQG in the Adani group firm. Adani Power Ltd, Adani Enterprises Ltd, Adani Ports and Special Economic Zone Ltd and Adani Green Energy Ltd were four Adani names where GQG had cut stakes in the June quarter, data compiled from corporate database AceEquity suggests.