38.6c New Delhi, India, Monday, October 03, 2022
Top Stories
Interviews Know The Law Book Reviews Videos
About Us Contact Us
Business

Qatar Investment Authority Acquires Shares In Adani Electricity Mumbai

By Lawstreet News Network      Feb 12, 2020      0 Comments      1,678 Views
Qatar Investment Authority Acquires Shares In Adani Electricity Mumbai

An announcement was made by Adani Transmission Limited (ATL) regarding Qatar Investment Authority's (QIA) acquisition of 25.10% stake in Adani Electricity Mumbai Limited (AEML) from ATL along with investment in the shareholder subordinated debt in AEML. The approximate investment by QIA is around Rs. 3,220 crores which includes an equity consideration of Rs. 1,210 crores and shareholder subordinated debt of Rs. 2,010 crores. The agreement between the parties was signed on 11th December 2019 and requisite approvals were established subsequently. 

Recently, there was a completion of investment-grade of one billion dollar bond issuance which is a first by a private integrated company from India. The issue generated significant interest from International Investors and was oversubscribed by 5.9 times. The investment by Qatar in AEML will be used by ATL towards the return of the perpetual to the tune of Rs. 1,209.62 crores in favour of contributor promoter entity. The perpetual was infused by the promoter entity to able to acquire AEML. The outstanding amount of promoter’s perpetual got reduced to Rs. 2,533 crores with post-return of Rs. 1,209.62 crores. 

AEML is the licensee for distribution, transmission and generation of business which serves at present more than 3 million consumers across a license area of approximately 400 square kilometres in the city of Mumbai. The market share of AEML in Mumbai is approximately 87% by license area, 67% of consumers served and 55 per cent of electricity is supplied. The trend in stock market depicts Rs 333.50 up by Rs 1.65 or 0.5 per cent from the previous closing in the Bombay Stock Exchange (BSE). The Chief Executive Officer of QIA, Mr Mansoor Al-Mahmoud said: “Adani Electricity Mumbai Limited is the best-in-class electricity utility in India and has tremendous potential for growth; this investment demonstrates our confidence in India, with whom Qatar shares deep-rooted ties and excellent relations”.

 

Author: Asif Iqbal



Tags:
AdaniElectricity
Share this article:


Lawstreet News Network
Editor
     



Leave a feedback about this




Related Posts
View All

TRENDING NEWS


TOP STORIES


ADVERTISEMENT


Lawstreet Advertisement

Signup for Our Newsletter

Get Exclusive access to members only content by email