“We believe this transaction is a significant step in the journey of the Adani Group, marking the start of a long-term partnership with QIA,” said Gautam Adani, chairman for the group.
An email query to Adani Transmission
on what was the rationale for the divestment remained unanswered.
“The company’s current fund requirements for the transmission and distribution business can be met without any divestment. Proceeds from the stake sale may be used to build a corpus to fund equity investments in future transmission acquisitions or for other distribution circles that come up for bidding,” said an analyst, who did not wish to be identified.
This is the Adani group’s second stake sale to a foreign investor or company this year. In October, French energy company Total entered into an agreement for a 37.4 per cent stake acquisition in Adani Gas.
The transaction from QIA is also the first time a sovereign fund will be investing in India’s power distribution business.