Adani Transmission on Monday said it has entered into an agreement with Kalpataru Power Transmission Ltd (KPTL) to acquire Alipurduar Transmission Ltd.
The enterprise value for the project is ascribed as Rs 1,286 crore, Adani Transmission (ATL) said in a regulatory filing. It said equity shares of the company are acquired at a face value of Rs 10 each per share.
Alipurduar Transmission operates transmission lines aggregating to around 650 circuit kilometres in Bengal and Bihar, ATL said.
“With this acquisition, the cumulative network of ATL will expand to more than 15,400 circuit km, of which more than 12,200 circuit km (including this asset) is operational and more than 3,200 circuit km is under various stages of execution,” the company said.
Adani Transmission MD and CEO Anil Sardana said, “The acquisition of Alipurduar Transmission Ltd will bolster the pan-India presence of ATL. This asset will take ATL closer to its target of setting up 20,000 circuit km of transmission lines by 2022”.
The acquisition is expected to be completed in two months, subject to the necessary regulatory approvals and other consents.
Alipurduar Transmission, a wholly owned subsidiary of KPTL, was set up as part of an inter-state transmission system to strengthen and transfer power from new hydroelectric power projects in Bhutan to India. The project involved designing, financing, building and maintaining 325km of 400KV transmission line.
It won this project through competitive bidding from REC Transmission Projects Company Ltd for a period of 35 years.
The Kalpataru Power stock jumped almost 9 per cent to close at Rs 255.05 on the BSE. Shares of Adani Transmission were 0.36 per cent higher at Rs 262.25 on the BSE.
Ernst & Young and Khaitan & Co were advisors to KPTL for this transaction.
The Rs 790.4 crore company said the unit contributes revenue of Rs 90.73 crore (0.71% of consolidated revenues of Kalpataru) and has a networth of Rs 170.20 crore (5.07% of consolidated net worth).
Kalpataru is owned by Mofatraj Munot and the promoters hold 54.37% stake in the company. Of this, 57.50% of the promoter’s stake is pledged with lenders.