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Adani Group’s power arm Adani Power Ltd (APL) will de-merge the transmission line business of the company. APL has convened a board meeting on December 28 to consider the demerger plan, the company informed in a stock exchange filing on Thursday.
“The board of directors meeting will be held on December 28, 2013, inter alia, to consider and approve demerger of transmission line business of the company and other incidental matters,” a company filing said.
According to sources, after the demerger from the standalone company Adani Power, the transmission line business will be made a separate subsidiary. Brokerage houses have maintained neutral view on the development for the Adani Power stocks. “It is positive in terms of it will remove the costs involved in the transmission line business from the financials of APL.
“However, the transmission line business has very small share to APL’s overall revenues. Hence, post the de-merger there doesn’t seem to be any major change in the numbers for APL,” said an analyst for a leading brokerage in Mumbai.
APL has set up 400 KV dedicated Mundra — Dehgam transmission line of 430 km — longest dedicated transmission line by a private sector player. It has also set up transmission lines from its power station in Tiroda, Maharashtra, to evacuate power to Warora and Aurangabad.
APL shares ended positive at Rs 39.60 up 3.4 per cent from its previous close on the BSE.
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