How do you see the Adani Transmission deal to buy Essel Infra projects?

The Adani group appears to be on an absolute acquisition journey for now. Recently, Adani Transmission signed a deal with Essel Infra for acquisition of the Warora-Kurnool Transmission. This deal has been struck at an enterprise valuation of Rs.3,370 crore. The necessary regulatory approval have already been obtained by both the parties and what remains is the consent of lenders, which will be essential due to Essel’s huge debts.

For Adani Transmission, this is another feather in their power cap. This will take the cumulative network of Adani Transmission to 17,200 ckt km, of which 12,350 ckt km is operational and the balance 4850 ckt is under execution and expected to be completed over the next few years.

The deal will help Adani Transmission Ltd to to boost its pan-India footprint. Essel group has been looking at buyers for these infrastructure projects after the group fell into deep financial stress. In the last few years, the Essel group had bid and won some major infrastructure projects but had got into stress forcing even the Zee group promoters to sell out their stake. The project was awarded on Build, Own, Operate, Maintain or BOOM basis.