Powering Ahead: Adani’s Triumph in Lanco Amarkantak Acquisition

On Monday, March 4, 2024, Adani Power Ltd received approval for its resolution plan to acquire insolvent Lanco Amarkantak Power Ltd.

Lanco Amarkantak Power is undergoing a corporate insolvency resolution process. The Committee of Creditors (CoC) has approved the resolution plan submitted by Adani Power, which belongs to the Adani Group.

Lanco Amarkantak Power and Its Assets

Lanco Amarkantak Power owns and manages a 2×300 MW thermal power plant at Pathadi village in Korba district of Chhattisgarh. The Phase 1 capacity is tied up with Haryana and Madhya Pradesh distribution companies under long-term supply arrangements. The company is also establishing a 2×660 MW (1,320 MW) expansion capacity under Phase 2.

The company stated that implementing the resolution plan is subject to the terms of the letter of intent and requisite approvals from regulatory authorities.

In February 2024, Adani Power Limited won the bid for Lanco Amarkantak at ₹4,101 crore. Lenders had pegged Adani Power’s offer of ₹4,101 crore as the base price for the auction of the thermal power company. They also specified that the counter offers should be at least ₹50 crore higher than the base bid for the auction to proceed.

It is to be noted that the Indian multinational conglomerate Reliance Industries Ltd and a consortium led by Power Finance Corporation Ltd, which is an Indian central Public Sector Undertaking (PSU) owned by the Ministry of Power, opted not to take part in the auction of the debt-ridden power company.

About Adani Power Limited

Incorporated in 1996, Adani Power Limited is the largest private-sector thermal power producer in India. The company has established its first power plant in Mundra, Gujarat. As of 2023, Adani Power accounts for a significant power generation capacity of 15,250 MW. The company operates its thermal power plants across the country in multiple states, such as Maharashtra, Gujarat, Rajasthan, Karnataka, Chhattisgarh, Madhya Pradesh and Jharkhand. Adani Power Limited’s solar power unit is located in Gujarat.

On Tuesday, March 5, 2024, the shares of Adani Power were trading 1.09% higher, around ₹566.

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.