Business

QIA to buy 25% in Adani power distribution firm

Transaction size is ₹3,200 crore

Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar, has agreed to buy 25.1% stake in Adani Electricity Mumbai Limited (AEML) for ₹3,200 crore (about $450 million).

Adani Transmission Limited (ATL), along with AEML, has signed agreements for the sale of a 25.1% stake in AEML to a subsidiary of QIA and for a shareholder subordinated debt investment by QIA in the power firm.

AEML is the licencee for an integrated power distribution, transmission and generation business that currently serves more than 3 million consumers across a licence area of approximately 400 sq. km in Mumbai. AEML’s market share in Mumbai is approximately 87% by licence area, 67% by consumers served and 55% by electricity supplied.

As part of the transaction, ATL and QIA have agreed on definitive plans to ensure that over 30% of the electricity supplied by AEML is sourced from solar and wind power plants by the year 2023. The transaction is expected to be completed in early 2020.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Feb 23, 2020 9:38:08 PM | https://www.thehindu.com/business/qia-to-buy-25-in-adani-power-distribution-firm/article30279500.ece

Next Story