Adani Transmission share price rises over 13% after firm acquires arm of REC Transmission Projects
BusinessToday.In October 15, 2019
Shares of Adani Transmission Ltd (ATL) rose over 13% on Monday as the company announced that it has signed a share purchase agreement and completed the acquisition of the WRSS XXI (A) Transco Ltd, incorporated by REC Transmission Projects.
WRSSTL Project consists of approximately 272 ckt km of 765kV line and 3000 MVA transformation capacity. This project is primarily being constructed to strengthen the Transmission System for relieving over loadings observed in Gujarat Intra-State System due to renewable energy Injections in Bhuj PS.
The scrip opened with a gain of 3.36% today and rose 13.51% to intraday high of Rs 255.35 on the BSE. The stock has been highly volatile today with an intraday volatility of 5.44%.
Adani Transmission stock trades higher than 5, 20, 50, 100 and 200-day moving averages and trades 4.98% away from a 52-week high of Rs 256.3. A total of 0.92 lakh and 4.8 5 lakh shares are trading on the counters of BSE and NSE, respectively. There is 50% buying and 50% selling in the stock.
On Monday, Adani Transmission Ltd ended Rs 2.85 or 1.28% higher at Rs 224.95 against its previous closing of Rs 222.10 on the BSE. The announcement was made after trading hours.
Adani Transmission has acquired 50,000 equity shares, representing 100% stakeholding in WRRSTL at face value of Rs 10. This acquisition is in sync with the company's strategy to enhance the value for its stakeholders through organic as well as inorganic opportunities, the filing added.
With this acquisition, ATL's cumulative transmission network will reach more than 14,000 ckt km of transmission line and more than 23,000 MVA transformation capacity, out of which more than 11,000 ckt km and more than 18,000 MVA are under the steady-state operation, the company said in a statement.
"ATL will build, own, operate and maintain the transmission project in Gujarat for a period of 35 years. The project consists of around 272 ckt km of 765kV line along with associated transmission system," it said.
"With the signing of the agreement for execution of transmission project in Gujarat, ATL's position as the largest private sector transmission company operating in India is consolidated further," company's managing director and CEO Anil Sardana said.
As of 1030 IST, shares of Adani Transmission were trading 9.80% higher at Rs 247 on the BSE.
By Rupa Burman Roy