Adani Power Ltd (APL) on Friday announced the acquisition of Chhattisgarh-based thermal power plant operator DB Power Limited for an enterprise value of ₹7,017 crore in an all-cash deal.
DB Power Limited, part of Diliigent Power Private Limited (DPPL), owns and operates a 2X600 Megawatt (MW) thermal power plant in the Janjgir Champa district in Chattisgarh.
APL will acquire 100 per cent of the total issued, subscribed and paid-up equity share capital and preference share capital of DPPL.
The Gautam Adani-led APL said that the acquisition will help it to expand offerings and operations in the thermal power sector in Chhattisgarh.
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 Limited, and has been operating its facilities profitably, a regulatory filing said.
Set up in October, 2006, DB Power is engaged in the business of establishing, operating and maintaining a thermal power generating station in Chhattisgarh.
APL has an installed power generation capacity of 12,450 Mw with a presence across Gujarat, Maharashtra, Chhattisgarh, Rajasthan, and Karnataka. The company has recorded total revenues of ₹31,686 crore for the fiscal ended March 31,2022, up from ₹28,150 crore last year.
The proposed transaction is subject to receipt of approval from the Competition Commission of India and any other approvals.
APL shares gained 3.2 per cent on the BSE to end at ₹412.20 on Friday.