AdaniConneX, the data centre joint venture floated by Adani Enterprises, has bought out a land-holding company from Adani Power. The deal gives the fast-growing data centre business a ‘head start’ on infrastructure it will need as it races to build capacity across India, the company announced via exchange filings.
Adani Enterprises told stock exchanges that AdaniConneX has acquired 100% equity in Chandenvalle Infra Park. The seller was Adani Power, another company in the Adani stable.
Land and licences for data centre expansion
Chandenvalle Infra Park is barely a functioning company on paper. Its authorised and paid-up share capital stands at just Rs 1 lakh each. It has reported no turnover so far because it has not started commercial operations, as per the filing.
The company was incorporated in Gujarat in February 2022 with the object of carrying out infrastructure development work. Since then, it has acquired a sizeable parcel of land and secured key licenses needed to develop that land.
AdaniConneX plans to use this land to build data centre infrastructure, as per the filing.
Rs 535.69 crore acquisition cost
AdaniConneX paid Rs 535.69 crore in cash to acquire the entire stake, according to the disclosure. The consideration was paid in cash against shares, not through any share swap arrangement.
Chandenvalle Infra Park was controlled by the promoter or promoter group of Adani Enterprises before the sale. AdaniConneX itself is a joint venture of Adani Enterprises.
The company has clarified that the acquisition does not qualify as a related-party transaction under SEBI’s listing rules. It said the deal was carried out on an arm’s-length basis, meaning the terms were set as they would be between unrelated parties.
AdaniConneX data centre expansion
AdaniConneX is one of several companies expanding data centre capacity in India as demand for computing and storage rises. Land and licenses take time to secure on their own. Buying a company that already has both can shorten that process.
About Adani Enterprises
Adani Enterprises is the flagship company of the Adani Group, the Ahmedabad-based conglomerate with businesses in ports, power, airports, mining and green energy. It is listed on both BSE and NSE. Adani Enterprises has a history of incubating new businesses through subsidiaries and joint ventures, several of which, including its airports and green hydrogen units, have gone on to become separate listed entities. AdaniConneX is one such business currently being built under this model.
Adani Enterprises share price today
Adani Enterprises’ share price has been rather flat as of intraday on August 28. The company’s share price has been up 5.09% in the past month. Adani Enterprises’ share price has been up 43.15% in the past year.