The shares of Adani Transmission Limited (ATL), Adani Group’s power transmission and distribution arm, hit a fresh 52-week high on Tuesday as the company is set to acquire Warora-Kurnool Transmission Ltd (WKTL) for an enterprise value of ₹3,370 crore.

At 9:58 am, ATL was trading at ₹902.15, on the BSE, up ₹33.15 or 3.81 per cent. It hit a 52-week high of ₹924.40. It opened at ₹898, as against the previous close of ₹869. On the NSE, it was trading at ₹902, up ₹31.40 or 3.61 per cent. It hit a 52-week high of ₹918.

The company had signed definitive agreements with Essel Infraprojects Limited (EIL) on March 26, 2021, for the acquisition of WKTL.

“As per the agreement, WKTL will develop, operate, and maintain transmission lines aggregating to about 1,750 ckt km. The two significant, 765 kV inter-state transmission lines link Warora to Warangal and Chilakaluripeta to Kurnool via Hyderabad, with a new 765/400 kV sub-station at Warangal, which shall be built & operated as a part of the agreement,” ATL said in a regulatory filing.

The project was awarded through a competitive bidding process on a build, own, operate, maintain basis and has a concession life of 35 years.

With the acquisition, the cumulative network of ATL will reach approx 17,200 ckt km, out of which approx 12,350 ckt km is already operational and approximately 4,850 ckt km (including this asset) are in various stages of execution.

“The acquisition of WKTL will bolster ATL’s pan-India presence, consolidating further its position as the largest private-sector transmission company in India. This strategic West to South 765 KV interconnector with substation in Southern India, completes ATL presence in all regions of the country. This asset will not only increase ATL’s size and scale but will also take ATL closer to its target of setting up 20,000 ckt km of transmission lines by 2022,” it said.

Published on March 30, 2021