Adani Energy shares in focus after transfer of Dahanu Thermal Power Station to subsidiary

Adani Energy Solutions (AESL) shares are in focus today after the company announced that its material subsidiary, Adani Electricity Mumbai (AEML), has executed a business transfer agreement (BTA) with its wholly-owned subsidiary, North Maharashtra Power Ltd. (NMPL). The agreement, signed on September 26, 2024, facilitates the transfer of the Adani Dahanu Thermal Power Station (ADTPS) from AEML to NMPL through a slump sale on a going-concern basis.

This move is part of Adani Energy’s broader restructuring strategy, first disclosed in July 2024, aimed at fulfilling the company’s environmental, social, and governance (ESG) commitments. According to an earlier statement, the restructuring is intended to attract ESG-focused investors and support AESL’s ambition to rank among the top 20 global utility companies in ESG ratings.

In July, AESL carved out the Dahanu power plant from its books, recording an exceptional loss of Rs 1,506 crore due to the slump sale. The transaction price for the plant was set at Rs 815 crore, significantly lower than its book value of Rs 2,321 crore. The company stated that the transaction was conducted on an arm’s length basis and is subject to regulatory approval.

AESL inherited the Dahanu Thermal Power plant in 2017 as part of its acquisition of the Mumbai distribution business from Reliance Infrastructure, formerly led by Anil Ambani.

On Friday, AESL’s shares closed at Rs 1,013.50, down 2.21% on the BSE, while the benchmark Sensex fell 0.31%. Shares of Adani Energy have declined 4% in 2024 to date and 72% over the past two years, with the company currently holding a market capitalization of Rs 1,21,750 crore.

In Q1 FY25, Adani Energy Solutions reported a consolidated net loss at Rs 824 crore as against Rs 175 crore net profit reported by the company in the year ago period. The revenue from operations in the reported quarter stood at Rs 5,379 crore versus Rs 3,664 crore reported in the year-ago period. It was up by 47% on the year-on-year (YoY) basis.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)