Adani Power, a company of the Adani Group, has received approval from NCLT. The NCLT Hyderabad Bench has approved the acquisition of Lanco Amarkantak Power Ltd. The NCLT approval was awaited for this deal for a long time. However, now this company will become Adani Power’s. This deal between Adani’s company and Lanco Amarkantak Power Ltd will be for Rs 4,101 crore.
In the BSE filing, the company informed that Lanco Amarkantak is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code and is under heavy debt, due to which this company is being sold. Now Adani Power has got approval to acquire it. However, Adani Power will get the acquisition of this company under certain conditions.
The company will buy 100% stake
The filing said Adani Power will acquire 100 per cent stake in Lanco Amarkantak in exchange for a cash payment, which means Adani Power will have full ownership of the company. The company owns and operates a 600 MW thermal power plant (stage-I) at Pathadi village in Korba district of Chhattisgarh. Most of the power generated from the stage-I capacity is supplied to Haryana and Madhya Pradesh discoms under long-term power purchase arrangement through Power Trading Corporation Limited.
A plant with a capacity of 1320 MW is being set up
The company has a long term fuel supply agreement of 2.784 MMT with South Eastern Coalfields Limited (SECL), a subsidiary of Coal India Limited. Lanco is also setting up 1320 MW expansion capacity under Phase II of Amarkantak. The acquisition is to be completed by 20 October 2024, within 60 days from the date of approval order of the National Company Law Tribunal (NCLT). Lanco Amarkantak aims to generate electricity, which is the core business of the company.
Adani Power shares rise
Adani Company said in a statement that the successful implementation of the resolution plan for the acquisition of Lanco Amarkantak and the acquisition will strengthen APL’s position as India’s leading private sector power producer, with a combined operational power generation capacity of 15,850 MW. After this deal, Adani Power shares were trading 1.08% higher at Rs 681 on Friday.