Adani to buy DB Power for over Rs 7,000 crore

With this deal, Adani Power’s installed thermal power capacity would go up to 14,810 MW, from 13,610 MW at present. A further 1,600 MW capacity is under-construction. At its annual general meeting, the company had said the aim is to achieve a capacity of 16,850 MW by 2028.

Adani to buy DB Power for over Rs 7,000 crore
DB Power has a long- and medium-term power purchase agreement for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India. It posted a turnover of ₹3,488 crore in FY22.

Adani Power, the country’s largest thermal power generator, will fully acquire DB Power for an enterprise value of ₹7,017 crore. DB Power, a Bhaskar Group-promoted company, owns and operates two thermal power plants with a capacity of 600 MW each in Chhattisgarh.

With this deal, Adani Power’s installed thermal power capacity would go up to 14,810 MW, from 13,610 MW at present. A further 1,600 MW capacity is under-construction. At its annual general meeting, the company had said the aim is to achieve a capacity of 16,850 MW by 2028.

DB Power has a long- and medium-term power purchase agreement for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India. It posted a turnover of ₹3,488 crore in FY22.

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Adani Power’s consolidated revenues in FY22 were 13% higher at Rs 31,686 crore while the consolidated Ebitda grew 30% to `13,789 crore, driven by improved merchant tariff and higher prior period income recognition. The company’s profit after tax was `4,912 crore compared with `1, 240 crore in the previous year.

The company’s operations are spread across Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh and Madhya Pradesh, apart from a 40 MW solar power plant in Gujarat.

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

A few weeks ago, Adani Power announced plans to merge six of its subsidiaries into itself. The merged entity will have a capacity of 12,450 MW across seven plants in six states.

Adani Power will hold 100% of the total issued, subscribed and paid-up equity share capital, and preference share capital of Dilligent Power (DPPL), the holding company of DB Power.

The proposed transaction is subject to receipt of approval from the Competition Commission of India. The initial term of the memorandum of understanding shall be till October 31, 2022, which may be extended by a mutual agreement.

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