Adani Power Set to Acquire Lanco Amarkantak Power for ₹4,101 Crore

On August 22, 2024, Adani Power announced that the National Company Law Tribunal (NCLT) in Hyderabad had approved its proposal to acquire Lanco Amarkantak Power Ltd (LAPL) with an upfront payment of ₹4,101 crore.

Lanco Amarkantak Power Ltd is currently in the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, according to a BSE filing. The acquisition will move forward once the conditions outlined in the resolution plan are fulfilled.

According to the filing, Adani Power will acquire 100% ownership of LAPL for a cash payment. LAPL operates a 600 MW thermal power plant (2×300 MW) in Pathadi Village, located in the Korba District of Chhattisgarh.

Most of the power generated from LAPL’s Phase-I is supplied to power distribution companies in Haryana and Madhya Pradesh through long-term agreements managed by Power Trading Corporation Ltd. LAPL has a long-term agreement for a fuel supply of 2.784 million metric tons with South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Limited. Additionally, LAPL is working on expanding its capacity with a Phase II project that will add 1,320 MW (2×660 MW).

The acquisition is expected to be completed within 60 days of the National Company Law Tribunal’s approval order, which sets the deadline for October 20, 2024. LAPL’s goal is to generate power, aligning with Adani Power’s main business focus. Successfully acquiring LAPL and executing the resolution plan will strengthen Adani Power’s position as India’s leading private power producer, with a combined power generation capacity of 15,850 MW.

About Adani Power

Founded in 1996 in Ahmedabad, Adani Power (APL) is a part of the Adani Group and stands as India’s largest private thermal power producer. It has a total power generation capacity of 12,450 MW, with thermal power plants spread across Gujarat, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh, along with a 40 MW solar power project in Gujarat. Adani Power Ltd is focused on generating, storing, distributing, supplying, and trading electricity.

On August 23, 2024, Adani Power Ltd’s share price opened at ₹687.00, touching the day’s high of ₹689.00 as of 10:34 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.