Adani Power share price rises 2% on NCLT nod to acquire Lanco Amarkantak

The Adani family is also looking to sell around 3 percent of Adani Power before the year-end and are looking to generate Rs 8,000-10,000 crore from this, a report said.

Shares of Adani Power Limited rose over 2 percent to Rs 689 in early trade on August 23 after the company announced that the National Company Law Tribunal (NCLT) Hyderabad Bench approved its Rs 4,101-crore resolution plan to acquire Lanco Amarkantak Power.

The acquisition comes as part of LAPL's Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC).

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Adani Power stated in a stock exchange filing that the NCLT’s Hyderabad Bench had posted its order online on August 22, confirming the approval of their resolution plan, which was submitted to acquire LAPL as part of the ongoing CIRP.

Lanco Amarkantak also operates a 600 MW thermal power plant in Chhattisgarh, which fits well with Adani Power’s core focus on power generation. The bulk of the electricity produced from LAPL's Phase-I capacity is supplied to Haryana and Madhya Pradesh DISCOMs under long-term Power Purchase Agreements through Power Trading Corporation Ltd.

LAPL also holds a long-term Fuel Supply Agreement for 2.784 MMT with South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Ltd. Additionally, LAPL is working on a Phase II expansion to add 2x660 MW (1,320 MW) of capacity.

This acquisition could solidify Adani Power’s position as India’s largest private-sector power producer, boosting its total operational generation capacity to 15,850 MW. The deal is expected to be finalized by October 20, 2024, within 60 days of the NCLT’s approval.

At about 9:30 am, shares of the company were trading at Rs 685, up 1.6 percent from the previous close on the National Stock Exchange. Adani Power shares have surged a massive 78 percent in the last three months.

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