Adani Power Ltd is all set to acquire DB Power Limited, which owns and operates a running 2×600 MW thermal power plant, at district Janjgir Champa in Chhattisgarh. This acquisition will be Adani Group’s power flagship enterprise in the state’s thermal power industry.
DB Power was incorporated on October 12, 2006, within the jurisdiction of the Registrar of Companies, Gwalior. It has been in the business of developing, operating and maintaining the thermal power-producing station in Chhattisgarh.
Adani Power will acquire 100 per cent of the total issued, subscribed and paid-up equity share capital and preference share capital of Diliigent Power Private Limited (DPPL). DPPL is the holding company of DB Power, and had a turnover of Rs 0.19 crore in 2021-22. DPPL will hold 100 per cent of total issued, subscribed, and paid-up equity share capital of DB Power on closing date.
About the timeline for the acquisition, the company said the initial term of the agreement to buy shall be till October 31, 2022, which may be extended by mutual agreement.
According to the statement, the proposed transaction is subject to receiving authorization from the Competition Commission of India and any other approvals that may be required as a result of the DPPL and DB Power due diligence process.
As of now, DB Power has been successfully running its facilities and has long- and medium-term Power Purchase Agreements for 923.5 MW of its capacity, supported by Fuel Supply Agreements with Coal India.
Adani Power Limited shares gained 3.2 per cent on the BSE to end at ₹412.20, Friday. The market value of the business is roughly ₹1,58,983.02 crore. The corporation had, earlier, reached a new 52-week high of ₹419 per share.