Adani Power Shares Rise After NCLT Nod For Acquiring Insolvent Lanco Amarkantak
The acquisition is expected to boost Adani Power's total operational capacity to 15,850 megawatts.
Shares of Adani Power Ltd. rose over 2% in early trade on Friday after it received approval from the National Company Law Tribunal to acquire insolvent Lanco Amarkantak Power Ltd. for Rs 4,101 crore.
The deal is slated for completion within 60 days, with a target date of Oct. 20, following the NCLT's approval, the company said on Thursday. This strategic acquisition is expected to solidify Adani Power's position as India's leading private sector power producer, boosting its total operational capacity to 15,850 megawatts, it said.
Lanco Amarkantak operates a 600-MW thermal power plant in Chhattisgarh's Korba district, supplying electricity to Haryana and Madhya Pradesh under long-term power purchase agreements.
The company also holds a 2.784 MMT fuel supply agreement with South Eastern Coalfields Ltd., a subsidiary of Coal India Ltd., and is working on expanding its capacity by an additional 1,320 MW under phase-II development.
Shares of Adani Power advanced as much as 2.3% before paring gains to trade 1.2% higher at Rs 682 per share at 9:58 a.m. The benchmark NSE Nifty 50 was trading 0.02% higher.
The stock has risen 111% in the last 12 months and 32% year-to-date. The relative strength index was 42.
The sole analyst tracking Adani Power has a 'buy' rating, according to Bloomberg data.
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