Adani Power Acquires Full Stake in Mirzapur Thermal Energy

Adani Power Limited (APL) has announced a significant development in a recent stock exchange filing. The company has acquired 10,000 equity shares of Mirzapur Thermal Energy (UP) Private Limited (MTEUPL), which represents 0.025% of MTEUPL’s total equity. As a result of this acquisition, MTEUPL has become a wholly-owned subsidiary of APL.

MTEUPL, incorporated on December 23, 2010, is engaged in infrastructure development activities, specifically focusing on setting up infrastructure facilities and capacity augmentation. The acquisition aligns with APL’s strategy to enhance its infrastructure capabilities. MTEUPL is currently in the process of establishing its operations and has not yet commenced commercial activities.

The equity shares were purchased from Adani Infra (India) Limited (AIIL), a related party of APL. Despite the related party nature of the transaction, it has been conducted on an arm’s length basis. This is ensured through a valuation report provided by an independent Registered Valuer, as required under Section 248 of the Companies Act 2013. The valuation confirms that the shares were purchased at a fair price of ₹10 per equity share, matching the nominal value.

The acquisition of the 10,000 shares, each with a face value of ₹10, has increased APL’s stake in MTEUPL from a minority position to complete ownership. This consolidation underlines APL’s commitment to expanding its infrastructure capabilities and supports its broader strategic objectives.

By holding 100% of MTEUPL’s equity shares, APL is now in a position to fully integrate and direct the subsidiary’s resources towards its infrastructure development goals. This acquisition is expected to play a pivotal role in enhancing APL’s infrastructure capacity and operational efficiency.

About Adani Power Limited

Adani Power (APL) is part of the diversified Adani Group. The company is the largest private thermal power producer in India. APL, along with its subsidiaries, sells power generated from these projects under a combination of long-term Power Purchase Agreements, short-term PPAs, and on a merchant basis.

On July 24, 2024, the share price of Adani Power Ltd opened at ₹697.70, touching the day’s high at ₹709.70, as of 11:16 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.