Adani Power on Thursday said it sold a 100% equity stake in Support Properties Private Ltd (SPPL) to AdaniConnex Private Ltd (ACX) at an enterprise value of ₹1,556.5 crore. The ACX is a 50:50 joint venture between Adani Enterprises, the flagship company of Adani Group, and EdgeConneX, the world’s largest private data center operator.

"Parties to the proposed transaction (for which a binding memorandum of understanding had been signed earlier) have executed a Share Purchase Agreement and concluded the transaction," Adani Power said in a BSE filing.

As per the filing, the proposed transaction is expected to close by March 31, 2023. In November last year, Adani Power had entered into a memorandum of understanding (MoU) to sell its 100% equity stake in its wholly-owned subsidiary Support Properties Private Ltd (SPPL) to ACX.

ACX is engaged in the business of developing world-class data centres and providing co-location hosting and ancillary services. It aims to build a 1GW data center infrastructure platform, in line with the vision of Digital India.

Last November, ACX opened a hyperscale data center campus in Chennai, which is designed to offer robust physical protection to IT Infrastructure with seven layers of security system and commitment to provide 99.999% availability. In phase 1, the campus will offer 17 MW (IT Load) that will scale up to 33 MW (IT Load) at full capacity.

India is one of the fastest growing data center markets in the world with current data center capacity of around 600 MW and expected to grow to around 1,300 MW by 2024. To address the growing need for reliable IT infrastructure, ACX is investing capital into the joint venture over the next decade with a mission to build over 1 GW green data center platform. It is also building hyperscale campuses in all the big cities of India, including Mumbai, Navi Mumbai, Noida, Pune, Kolkata, Bhubaneshwar, Bengaluru, Hyderabad, Vizag, and many more. Besides, it is also developing distributed edge data centers and far edge facilities in tier 2 and 3 markets, relying heavily on renewable energy sources to help bring cloud, content, and data closer to customers.

Following the announcement, Adani Power shares opened marginally higher at ₹201.30 against the previous closing price of ₹201.20 on the BSE. In the first hour of trade so far, it touched a high and low of ₹203.85 and ₹199.50, respectively.

The Adani Power stock was again put under the short-term additional surveillance measures framework from Thursday by the BSE and the NSE. This comes days after the NSE moved three Adani Group stocks—Adani Enterprises, Adani Power and Adani Wilmar— out of short-term additional surveillance measures framework last week. The three stocks were added to the short-term ASM framework on March 8.

The move also comes close on the heels of the two exchanges moving Adani group stocks -- Adani Green Energy and NDTV -- from the second stage of the long-term ASM framework to Stage I on Monday.

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