Adani Power to buy DB Power for ₹7,000 crore

Adani Power will acquire DB Power at an enterprise value of 7,017 crore. The initial period of the MoU between the two companies will be till 31 October 2022, but it can be extended further with mutual consent.

Incorporated in October 2006, DB Power Thermal is engaged in the business of installation, operation and maintenance of Power Generating Station in Chhattisgarh State

In its regulatory filing, Adani Power said, “The acquisition will help the company expand its offerings and operations in the thermal power sector in the state of Chhattisgarh.”

The proposed transaction is subject to obtaining approval from Competition Commission of India and any other approvals identified after due diligence exercise to be carried out in respect of DPPL and DB Power.

Adani Power will hold 100% of the total issued, subscribed and paid-up equity share capital and preference share capital of DPPL. Whereas DPPL will hold 100% of DB Power as on the closing date of the transaction.

Diligent Power (DPPL) is the holding company of DB Power.

Presently, DB Power has long term and medium term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India, and is operating its facilities profitably.

Shares of Adani Power closed on BSE up by 412.20 12.80 or 3.20%. The market cap of the company is approx. 1,58,983.02 crore. Earlier, the company touched a new 52-week high of Rs. 419 each.

In Q1FY23, Adani Power registers a massive growth of 1,619% in Consolidated Profit After Tax (PAT) 4,780 crore as compared to 278 crore in the same quarter last year. total income increased 15,509 crores. more than double of 7,213.21 crore was recorded in the first quarter of FY22. Consolidated EBITDA for Q1FY23 came in at 7,506 crore vs. 2,292 crore in the year-ago period, an increase of 227%.

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