Shares of Adani Transmission rose over 6 percent to hit a new high on Tuesday after the firm acquired Warora-Kurnool Transmission Limited (WKTL) from Essel Infraprojects for Rs 3,370 crore.

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The stock rose as much as 6.3 percent to its all-time high of Rs 924.40 per share on the BSE. In the past three months, the stock of Adani Transmission has rallied 113 percent as against a 5 percent rise in Sensex.

The acquisition is expected to be completed in one month, subject to all necessary regulatory approvals and other consents. As per the agreement, WKTL will develop, operate, and maintain transmission lines aggregating to around 1,750 ckt km.

The new lines will link 765 kV interstate transmission lines, which connects Warora to Warangal and Chilakaluripeta to Kurnool via Hyderabad, with a new 765/400 kV sub-station at Warangal, which shall be built & operated as a part of the agreement.

The project was awarded through a competitive bidding process on a build, own, operate, maintain basis and has a concession life of 35 years, added the press release.

The agreement has been signed post consent by the Central Electricity Regulatory Commission (CERC) for substitution of the original awardee in the contract by Adani Transmission, for 100 percent of equity holding in WKTL, the company said.

The acquisition of WKTL will bolster Adani Transmission's pan-India presence, consolidating further its position as the largest private-sector transmission company in India. This asset will not only increase ATL’s size and scale but will also take the firm closer to its target of setting up 20,000 ckt km of transmission lines by 2022, added the filing.

(Edited by : Pranati Deva)