Adani Group-backed Adani Transmission is among the leading players in the power transmission sector in India.But now this firm has changed its name to Adani Energy Solutions with effect from July 27.On Friday, this Adani stock which is listed as Adani Transmission reacted positively to the change in company name and traded higher by more than 1.5% on BSE.
At the time of writing, Adani Transmission’s share price performed at Rs 812.70 apiece, up by 0.92% on BSE.The stock has gained by at least 1.56% in the opening deals to touch an intraday high of Rs 817.90 apiece.
The stock also opened higher at Rs 810 apiece from its previous day’s closing price of Rs 805.30 apiece.
In its regulatory filing, the company said, “This is to inform that the Company’s name has been changed from “Adani Transmission Limited” to”Adani Energy Solutions Limited” w.e.f.27th July, 2023 pursuant to the even dated “Certificate of Incorporation pursuant to change of name” received from the Registrar of Companies, Ahmedabad as per copy enclosed herewith.”
The Ministry of Corporate Affairs has certified the same.
Originally, the company was incorporated with the name Adani Transmission.It is the e-transmission and distribution business arm of the Adani Portfolio.
Adani Transmission is the country’s largest private transmission company, with a presence across 14 states of India and a cumulative transmission network of 19,779 ckm, out of which 15,371 ckm are operational and 4,408 ckm are at various stages of construction.
Also, the company operates a distribution business, serving more than 12 million consumers in Mumbai and Mundra SEZ.
In the first quarter of FY24, as per the provisional operating performance data, Adani Transmission maintained its system availability upwards of 99.77%.The company added 550 ckms to the operational network during the quarter with a total network at 19,778 ckms.Also, the company received LOA for three smart metering projects in Andhra Pradesh totalling 2.7 million smart meters with a contract value of Rs.37 billion during the quarter.
Further, the company’s distribution loss improving consistently and stands at 4.85% in Q1 FY24 vs.6.95% in Q1 FY23.The loss was lower than usual due to seasonal factors.The company sold 2,754 million units vs.2,560 million units lastyear on account of an uptick in energy demand.
Additionally, the e-payment as a percentage of total collection at 78.5% in Q1 FY24 vs74.7% last year driven by a digital adoption push.
In its Q1 operational data update, Adani Transmission said that the near-term transmission and smart metering pipeline remains very robust,and the company is fully geared up to participate in the upcoming tenders.
Adani will announce its overall financial results for the quarter ending June 30, 2023(Q1FY24) period, on July 31.
In the past five trading sessions, Adani Transmission’s stock has gained nearly 5%.However, year-to-date performance is a downfall of over 68% on BSE owing to the Hindenburg report in late January which led to an extreme selling in overall Adani Group stocks.But the stock emerges as a multi-bagger as its 5-year performance is robust with an upside of a whopping 386%.