Rs 59,936 crore order book: Adani Group-backed power company concludes USD 49.5 million open market repurchase of its senior secured notes
The stock is up by 47.3 per cent from its 52-week low of Rs 588.25 per share.
Adani Electricity Mumbai Ltd (AEML), a subsidiary of Adani Energy Solutions Ltd (AESL), India's leading private transmission and distribution company, has successfully completed an open market repurchase of its Senior Secured Notes, totalling USD 49.5 million. These notes, originally issued on February 5, 2020, with a 3.949% interest rate and due in 2030, were bought back and subsequently cancelled. AEML funded this repurchase using its internal cash flows, a move that reduces the outstanding principal amount of these notes to USD 830.5 million from the initial USD 1,000 million.
This strategic repurchase is part of AEML's ongoing capital management plan and follows a previous tender offer in November 2023, where USD 120 million of the same notes were repurchased. By actively reducing its outstanding debt obligations, AEML demonstrates its robust financial flexibility and strong cash-generation capabilities. The company has also indicated that it may undertake further liability management exercises in the future, subject to prevailing market conditions, as part of its commitment to sound capital management.
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About Adani Energy Solutions Ltd (AESL)
AESL, a key player in the Adani portfolio, is a multifaceted energy company operating in various sectors, including power transmission, distribution, smart metering, and cooling solutions. As India's largest private transmission company, AESL boasts a vast network of 21,783 km and a transformation capacity of 61,686 MVA. In its retail electricity distribution business, AESL serves over 13 million consumers in Mumbai and Mundra SEZ. The company is actively expanding its smart metering business, aiming to become a leading integrator in the field. With its integrated offerings, including parallel licenses, competitive retail solutions, and a significant share of green power, AESL is revolutionising the way energy is delivered to end consumers. AESL is a driving force in transforming the energy landscape towards a more reliable, affordable, and sustainable future.
The company has a market cap of over Rs 1 lakh crore and has an order book of Rs 59,936 crore. The stock is up by 47.3 per cent from its 52-week low of Rs 588.25 per share. From Rs 28.35 to Rs 866.45 per share, the stock gave multibagger returns of 2,956 per cent in a decade.
Disclaimer: The article is for informational purposes only and not investment advice.