Adani Power on Friday said it will acquire DB Power Ltd, which owns and operates a 2 x 600 MW thermal power plant at district Janjgir Champa in Chhattisgarh, at an enterprise value of Rs 7,017 crore for cash consideration.
DB Power has long-and-medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Ltd, and has been operating the units profitably, Adani Power said. The cost of the acquisition is subject to adjustments on the closing date.
Adani Power will acquire 100 per cent of the total issued, subscribed and paid up equity share capital and preference share capital of Diligent Power Private Limited (DPPL). DPPL is the holding company of DB Power, and had a turnover of Rs 0.19 crore in 2021-22. 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.
The acquisition will help Adani Power expand its offerings and operations in the thermal power sector in Chhattisgarh. DB Power was incorporated on October 12, 2006, within the jurisdiction of the Registrar of Companies, Gwalior.
The turnover of DB Power during last three financial years was Rs 3,488 crore (for FY 2021-22); Rs 2,930 crore (for FY 2020-21) and Rs 3,126 crore (for FY 2019-20). Adani Power reported a consolidated profit after tax at Rs 4,780 crore for the quarter ended June 30 compared with Rs 278 crore a year ago. Total income rose to Rs 15,509 crore from Rs 7,213.21 crore a year ago. The stock on Friday jumped 3.20 per cent to Rs 412.20 on the BSE.
The Gautam Adani-led group has announced a flurry of deals in the past eight days. On August 16, Adani Logistics, a wholly owned subsidiary of Adani Ports and SEZ, signed an agreement to buy an inland container depot at Vapi, Gujarat from Navkar Corporation for Rs 835 crore. The deal comes with 129 acres of land, which the company said would be utilised to increase capacity and cargo.
The inland container depot is strategically located at dedicated freight corridors in the state. Just eight days ago, the Adani group said it will invest Rs 57,575 crore in setting up an alumina refinery in Odisha.
The group said it will set up a 4-million tonnes-a-year alumina refinery near bauxite mines as well as an iron ore project. Starting as a commodities trader in the late 1980s, the Adani group has added ports, airports, power, renewable energy, gas distribution, data centre and more recently cement business.
