Adani Energy Solutions announced on Thursday that it had successfully completed its acquisition of Essar’s Mahan-Sipat Transmission assets, which have a total enterprise value of Rs 1,900 crore.

As stated in a company press release, definitive agreements were signed in June 2022, paving the way for this share acquisition.

Adhering to all necessary regulatory and other approvals, Adani Energy Solutions Ltd (AESL) has now obtained a 100% stake in Essar Transco Limited, with an enterprise value of Rs 1,900 crores.

This acquisition encompasses a fully operational inter-state transmission line, spanning 400 kV and 673 ckt km (circuit kilometres), connecting Mahan in Madhya Pradesh to the Sipat pooling substation in Chhattisgarh.

This project, which was commissioned on September 22, 2018, operates within a regulated return framework under the oversight of the Central Electricity Regulatory Commission (CERC).

In a significant move, Adani Transmission Step Two Ltd, a wholly-owned subsidiary of Adani Energy Solutions, has acquired a 100% stake in Essar Transco Ltd for Rs 1,900 crore. This transaction sets a new benchmark for AESL in terms of capital-raising capabilities and enables access to lower-cost debt for its operational assets.

MUFG Bank Ltd serves as the sole lender for this financing arrangement. The acquisition of the Mahan-Sipat Transmission assets marks a significant milestone for Adani Energy Solutions, further solidifying its position in the energy sector.