Adani Power Acquires Majority Stake in Mirzapur Thermal Energy

Adani Power has announced that Mirzapur Thermal Energy U.P. Private Limited (MTEUPL) has become its subsidiary following a preferential allotment of shares. Adani Power has been allotted 50,00,000 equity shares of Mirzapur Thermal Energy U.P. Private Limited, each valued at ₹10, resulting in Adani Power acquiring a 99.8% equity stake in MTEUPL. Consequently, Mirzapur Thermal Energy U.P. Private Limited is now under the control of Adani Power, solidifying its status as a subsidiary.

Mirzapur Thermal Energy U.P. Private Limited (MTEUPL) is the target entity in this transaction. The company has an authorised share capital of ₹5,25,00,000 and a paid-up share capital of ₹5,01,00,000. Notably, MTEUPL has not yet started its commercial operations.

The acquisition qualifies as a related-party transaction. Mirzapur Thermal Energy U.P. Private Limited is a related party of Adani Power Limited (APL). Before the allotment of equity shares to Adani Power, MTEUPL was wholly owned by Adani Infra (India) Limited (AIIL), a related party. The transaction is being conducted on an arm’s length basis, supported by a valuation report from an independent registered valuer under Section 248 of the Companies Act 2013.

Mirzapur Thermal Energy U.P. Private Limited operates in the infrastructure development sector. This acquisition will enhance Adani Power’s infrastructure facilities and expand its capacity.

Following MTEUPL’s allotment of equity shares to Adani Power Limited, Adani Power now holds 99.80% of MTEUPL’s total equity shares. The consideration for this acquisition is cash.

Cost of Acquisition

Adani Power Limited has acquired 50,00,000 equity shares of MTEUPL for ₹10 per share. This valuation is based on a report from an independent registered valuer.

About Mirzapur Thermal Energy U.P. Private Limited

Mirzapur Thermal Energy U.P. Private Limited (MTEUPL) was incorporated in India on December 23, 2010, and is registered with the Registrar of Companies, Gujarat, in Ahmedabad. The company was established to establish infrastructure facilities and enhance the capacity of the parent company. MTEUPL has not yet started its commercial operations.

On June 6, 2024, the shares of Adani Power opened at ₹749.90, touching the day’s high of ₹785.00, as of 10.01 AM on 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.