Adani Transmission keen on acquisition of three subsidiaries of PFC Consulting
DSIJ Intelligence / 26 Nov 2015
Adani Transmission (ATL) acquired 3 wholly owned subsidiaries of PFC Consulting (a wholly owned subsidiary of Power Finance Corporation). It acquired these companies in a competitive bidding process carried out by the Power Finance Corporation.
Adani Transmission (ATL) acquired 3 wholly owned subsidiaries of PFC Consulting (a wholly owned subsidiary of Power Finance Corporation). It acquired these companies in a competitive bidding process carried out by the Power Finance Corporation. The company is the leading private sector transmission company in the country.
One of the acquired companies of ATL is Chhattisgarh-WR Transmission for system strengthening for Independent Power Producers (IPPs) in Chhattisgarh and other generation projects in western regions. The second one acquired is Sipat Transmission for additional system strengthening for Sipat STPS. It also acquired Raipur-Rajnandgaon-Warora Transmission which is the last of the acquisitions.
ATL's transmission network will increase by 27.40 per cent to 6435 circuit km from 5051 circuit km after the new acquisitions and completion of these projects.
On the financial front, ATL's revenue increased by 14.14 per cent to Rs 35.28 crore in Q2FY16 as compared to the previous quarter. The company's total expenditure increased by almost double to 22.57 crore in Q2FY16 on quarterly basis. Its EBITDA reduced by 29.21 per cent to Rs 13.12 crore in Q2FY16 as compared to previous quarter. ATL's net loss stood at Rs 17.89 crore in Q2FY16 against net loss of Rs 24.56 crore in Q1FY16.
The government is going to invite bids for transmission projects estimated to cost about Rs 12000 crore. These are a part of its Rs 1 lakh crore of investment planned in the sector. The bid constitutes two projects viz. Warangal project with an estimated cost of Rs 9000 crore and another project in Odisha with an estimated cost of Rs 3000 crore. These bids are to be called in coming months. There are companies which are in competition with ATL to form bids such as Power Grid Corporation of India, Sterlite Grid, Kalpataru Power Transmission, Essel Infraprojects and a consortium of Gayatri Projects & Megha Engineering & Infrastructures.
ATL's shareholding pattern indicates that FII holdings contracted by 176 basis points to 11.18 per cent and DII holdings also contracted by 1 basis points to 2.61 per cent during September 2015 quarter. The company's share price increased by 4.58 per cent on bourses in early trades and is trading at Rs 39 on intraday basis. On the other hand the Power Finance Corporation share price also rose by 0.94 per cent to Rs 210.25 on bourses and is trading at Rs 208.8 on intraday basis.
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