Adani Green Energy To Buy Essel Group's Solar Assets

Gautam Adani-led by Adani Group's Adani Green Energy said it has signed an agreement to buy solar assets of Essel Group. The deal values Essel Group's solar assets at Rs 1,300 crore. Following this development, Adani Green Energy's share price rose as much as 10.5 per cent to hit an intraday high of Rs 47.90 on the BSE. On the National Stock Exchange Adani Green Energy's share price climbed as much as 10.25 per cent to Rs 47.85 outperforming the Nifty which was down 0.15 per cent.

"Adani Green Energy Limited (AGEL) today signed a securities purchase agreement for acquisition of 205 MW operating solar assets of Essel Green Energy Private Limited (EGEPL) and Essel Infraprojects Limited (EIL). The assets are located in Punjab, Karnataka and Uttar Pradesh," Adani Green Energy said in an exchange notification after market hours on Thursday.

"All the assets have long term Power Purchase Agreements (PPAs) with various state electricity distribution companies. The portfolio is relatively young with average remaining PPA life of approximately 22 years," the company added.

Jayant Parimal, CEO of Adani Green Energy, said, "The acquisition of 205 MW of operating solar assets strengthens Adani Green Energy's position as one of India's premier renewable power producers, with a total portfolio of 5.5 GW, of which 2.5 GW is operational, and the remaining is to be operationalized over the next 2 years.

As of 1:49 pm, Adani Green Energy shares traded 6.8 per cent higher at Rs 46.30, outperforming the Nifty which was up 0.14 per cent.