Shares of Adani Energy Solutions Ltd. rose 1% to reach a day’s high of Rs 1,014.80 on 14th October after the company announced an agreement with Kenya Electricity Transmission Company (Ketraco) to develop, finance, construct, and manage key transmission infrastructure across Kenya.

The project was signed on 9th October and confirmed by Energy and Petroleum Cabinet Secretary Opiyo Wandayi in an official statement. The company will raise funds through debt and equity, which will be repaid over the 30-year agreement.

It is estimated to cost 95.68 billion Kenyan shillings ($736 million) and will involve constructing transmission lines and substations to enhance Kenya’s energy infrastructure.

Ketraco and the project company will manage a competitive bidding process for development, prioritising local content. The Kenyan government will have no financial obligations for the project, while Adani Energy Solutions will operate and maintain the transmission lines for 30 years.

This deal follows Adani’s recent cost-cutting initiative, announced on 16th September, which reduced overall project costs by 27% to $736 million.

So far in 2024, the shares of Adani Energy have given negative returns of nearly 7%. Currently, the company’s market capitalisation stands at around Rs 118,092 crore.

At 11:04 AM, the shares of Adani Energy were trading 0.79% higher at Rs 984.55 on NSE.

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