Adani to hike stake in power subsidiary to 75%
Betting big on power business, Adani Enterprises board has approved infusion of additional funds in its subsidiary Adani Power and increase promoters' stake to 75 per cent from 68 percent.
"Board of Adani Enterprises has approved, in principle, the proposal to allow additional investment in Adani Power so as to enhance the total promoters' shareholding up to 75 percent from about 68 per cent," the company said in a release.
However, the company did not disclose the amount that would be pumped in for raising the stake.
This would be concluded after necessary formalities by Adani Power and in compliance with applicable SEBI regulations, the statement said.
Adani Enterprises today reported a decline of 42 per cent in its consolidated net profit to Rs 320.21 crore for the quarter ended September 30, 2012 due to muted growth in sales and increased tax outgo.
The company had reported a net profit of Rs 552.68 crore during the corresponding quarter of the previous fiscal.
Net sales of the company was marginally up by 1.82 per cent to Rs 10,261.85 crore during the quarter vis-a-vis Rs 10,078.73 crore of the July-September quarter of FY'12.
The company also reported a forex gain of Rs 129.88 crore in the last quarter due to appreciation in Rupee.
"Our Power Generation business is presently undergoing stress due to high prices of imported coal, shortfall against linkages of domestic coal and limited availability of transmission lines," Adani group chairman Gautam Adani said in a statement.
He added that "we are fully committed in resolving these issues and expect Power Generation business to reap scale and integration benefits and be a large value contributor."
Besides, it also expects to expand the power generation capacity of Adani Power to nearly 10000 MW by March next year from the current levels of 4660 MW.
Adani Enterprises scrip was trading at Rs 222.80 apiece on the BSE, down 0.27 per cent from the previous close.