Adani Energy Shares Surge as Dahanu Thermal Power Station Transferred to Subsidiary

Shares of Adani Energy Solutions (AESL) are making headlines today after the company announced a major transfer involving the Dahanu Thermal Power Station. On September 26, 2024, Adani Electricity Mumbai (AEML), a key subsidiary of AESL, signed a business transfer agreement with another wholly-owned subsidiary, North Maharashtra Power Ltd. (NMPL). This deal involves transferring the Dahanu plant through a slump sale while keeping it operational.

This move is part of AESL’s larger restructuring plan, revealed in July 2024, aimed at improving the company’s environmental, social, and governance (ESG) performance. The goal is to attract investors focused on ESG factors and to elevate AESL’s standing among the top 20 global utility companies for ESG ratings.

In July, the company recognized a significant loss of ₹1,506 crore due to the plant’s transfer, which was priced at ₹815 crore—much lower than its book value of ₹2,321 crore. The company assured that the deal was fair and conducted at market rates, pending regulatory approval.

AESL acquired the Dahanu plant in 2017 when it took over the Mumbai distribution business from Reliance Infrastructure.

On Friday, AESL’s shares closed at ₹1,013.50, down 2.21%, while the benchmark Sensex fell by 0.31%. So far in 2024, shares of Adani Energy have dropped by 4% and are down 72% over the past two years, with a current market cap of ₹1,21,750 crore.

In the first quarter of FY25, Adani Energy reported a consolidated net loss of ₹824 crore, compared to a net profit of ₹175 crore in the same period last year. However, revenue from operations increased to ₹5,379 crore, a 47% rise year-on-year.