Adani Energy Solutions Ltd (AESL), formerly known as Adani Transmission, is making headlines as its distribution arm, Adani Electricity Mumbai Limited, plans to repurchase bonds worth $360 million (approximately Rs 3,000 crore). In the previous session, AESL stock closed 1.19% lower at Rs 759.10 on BSE. The turnover amounted to Rs 70.44 lakh, with 9,276 shares changing hands. The market cap of Adani Energy Solutions stands at Rs 84,677 crore on BSE, with a one-year beta of 1.4, indicating high volatility.
From a technical standpoint, the relative strength index (RSI) of Adani Energy Solutions is at 45.6, suggesting it is neither in the overbought nor oversold zone. The stock is above the 20-day moving average but below the 5-day, 10-day, 30-day, 50-day, 100-day, and 150-day moving averages.
The company plans to fund the tender offer using internal accruals and cash surplus. The purpose of the buyback is to showcase the robust financial stability and liquidity position of the company. Adani Energy Solutions believes the buyback will stabilize current yields, particularly in volatile market conditions, and enhance investor confidence.
Adani Energy Solutions holds the distinction of being the largest private transmission company in the country, operating across 16 states with a cumulative transmission network spanning 19,800 ckm and a transformation capacity of 53,000 MVA. In the distribution sector, the company serves over 12 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ. The buyback move aligns with Adani Energy Solutions’ strategy to reinforce its financial position and boost investor confidence in the midst of market fluctuations.
