Adani Energy Solutions Incorporates Wholly Owned Subsidiary Adani Energy Solutions Global

Adani Energy Solutions Ltd. has incorporated an wholly-owned subsidiary Adani Energy Solutions Global Ltd.

Its initial share capital is $27,000 divided into 27,000 shares with a nominal value of $1 each, according to an exchange filing.

The acquisition does not fall within related party transactions. The acquisition of the investment holding company will enable Adani Energy Solutions to explore business opportunities in transmission projects outside India.

The consideration was in cash and the cost of acquisition was via initial subscription to the share capital.

Adani Energy Solutions Ltd. was awarded the contract for the Khavda Phase-IV Part-A transmission network on Wednesday.

The contract involves evacuating 7 gigawatt of renewable energy from the Khavda Renewable Energy Park into the National Grid. The contract was awarded through a tariff-based competitive bidding process.

The firm will operate the project on a build, own, operate, and transfer basis for 35 years.

The firm recently received a "buy" rating from ICICI Securities Ltd., which initiated coverage on the stock with a target price of Rs 1,318 per share, indicating a potential upside of 30%.

Earnings growth is expected to be driven by new transmission projects, expansion in the Mumbai distribution business, and the scaling of smart meter assets.

ICICI Securities estimates a 32% compound annual growth rate in Adani Energy Solutions' Ebidta between fiscal 2024 and financial year 2027, mainly due to contributions from new transmission bids, smart meter projects, and growth in distribution areas.

All four analysts tracking by Bloomberg have a "buy" rating on the stock, according to Bloomberg data. The average 12-month Bloomberg analyst consensus price target implies a potential upside of 19.1%.

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