Companies

Adani Power to pick 49% stake in Odisha Power Generation for ₹1,019 cr

Our Bureau Ahmedabad | Updated on June 23, 2020 Published on June 23, 2020

Inks definitive pact with affiliates of US-based AES Corporation

Adani Power Ltd has inked a definitive agreement to acquire 49 per cent stake in Odisha Power Generation Corporation (OPGC) from the affiliates of the US-based global energy major AES Corporation.

The acquisition, which marks APL’s foray into Odisha, is likely to be completed within six months from the date of signing the share sale and purchase agreement.

The consideration for the acquisition of 49 per cent stake is $135 million (approximately ₹1,019 crore), a regulatory filing informed. The deal is said to be an all-cash deal with cash consideration to be paid in two tranches.

As per the agreement, APL will get 89,30,237 equity shares representing 49 per cent of the total issued, paid-up and subscribed equity share capital of OPGC.

The development comes a day after the APL board fixed a floor price for the voluntary delisting of APL shares from the stock exchanges.

OPGC is engaged in the business of establishing, operating and maintaining thermal power plants in Odisha.

OPGC, where the Odisha government holds 51 per cent stake, operates a 1,740-MW thermal power plant at Banharpalli in Jharsuguda district, Odisha.

“This plant is the mainstay of the Odisha State for base load power supply and amongst the lowest cost power generated in the State. The supercritical capacity of 1,320 MW is a recently commissioned modern plant with low carbon footprint,” the filing stated.

The said plant has a long-term power purchase agreement (PPA) valid for 25 years with the state-owned off taker GRIDCO and sources fuel from a nearby captive mine.

“Adani Group is committed for successful and mutually beneficial long-term partnership with Government of Odisha,” a statement said.

OPGC has reported total turnover of ₹888 crore for fiscal 2018-19, which has seen growth over past years. In 2017-18, the turnover stood at ₹613 crore, which was ₹758 crore in 2016-17.

APL shares ended in red at ₹37.85 Tuesday, about 1 per cent down from the previous close on the BSE.

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Published on June 23, 2020
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