HomeBUSINESSAdani Power to buy DB Power for ₹7,000 crore

Adani Power to buy DB Power for ₹7,000 crore


Adani Power on Friday agreed to acquire DB Power which owns and operates a running 2×600 MW thermal power plant at District Janjgir Champa in Chhattisgarh. With this acquisition, the Adani Group-backed power flagship will expand its offerings and operations in the thermal power sector in the state.

Adani Power will acquire DB Power at an enterprise value of 7,017 crore. The initial term of the MoU between the two companies will be till October 31, 2022, but can be extended further on mutual agreement.

Incorporated in October 2006, DB Power is engaged in the business of establishing, operating, and maintaining a thermal power generating station in the state of Chhattisgarh.

In its regulatory filing, Adani Power said, “The acquisition will help the Company to expand its offerings and operations in the thermal power sector in the state of Chhattisgarh.”

The proposed transaction is subject to receipt of approval from the Competition Commission of India and any other approvals as may be identified following the due diligence exercise to be conducted with respect to DPPL and DB Power, it said.

Adani Power will hold 100% of the total issued, subscribed, and paid-up equity share capital and preference share capital of DPPL. While DPPL will hold 100% of DB Power on the closing date of the transaction.

Diligent Power (DPPL) is the holding company of DB Power.

Currently, 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, and has been operating its facilities profitably.

On BSE, Adani Power shares closed at 412.20 apiece up by 12.80 or 3.20%. The company’s market cap is around 1,58,983.02 crore. Earlier, the company had touched a fresh 52-week high of 419 apiece.

In Q1FY23, Adani Power reported a whopping 1,619% rise in consolidated profit after tax (PAT) at 4,780 crore compared with 278 crore in the corresponding quarter last year. Total income climbed to 15,509 crore more than double of 7,213.21 crore recorded in the Q1 of FY22. Consolidated EBITDA for Q1FY23 came in at 7,506 crore vs 2,292 crore in the year-ago period, a rise of 227%.

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