Adani Power Rises After NCLT Green Lights Proposal To Acquire Lanco Amarkantak Power

Shares of Adani Power Limited were rising on Friday after the National Company Law Tribunal (NCLT) approved the company's plan to acquire Lanco Amarkantak Power Limited (LAPL).

What Happened: The NCLT has given the green light to the resolution plan put forth by Adani Power for the acquisition of Lanco, which is currently undergoing the corporate insolvency resolution process, the Adani Group firm said in a press release on Thursday.

However, the acquisition is contingent on the fulfilment of certain conditions as outlined in the resolution plan.

The acquisition process is slated to be wrapped up within 60 days from the issuance of the NCLT’s approval order, which pegs the completion date at October 20. The deal will be an all-cash transaction, with an upfront payment of ₹4,101 crore.

See Also: Why This Brokerage Sees Texmaco Rail Shares Going Up Over 30%

“Successful acquisition and implementation of the resolution plan for acquisition of LAPL will advance APL’s position as India’s leading private sector power producer, with a combined operational power generation capacity of 15,850 MW (megawatt)," the company added in the press release.

LAPL owns and operates a 2×300 megawatt (600 megawatt) thermal power plant at Pathadi Village in Korba District of Chhattisgarh. The majority of the power generated from the phase-I capacity is supplied to Haryana and Madhya Pradesh DISCOMs under long-term power purchase arrangements through Power Trading Corporation. Lanco is also in the process of setting up a 2×660 megawatt (1,320-megawatt) expansion capacity under Phase -II.

Price Action: Shares of Adani Power were up 0.72% at ₹678.55 on Friday.

Read Next: HDFC Bank Rejects MUFJ’s $2B Stake Purchase Offer For NBFC Unit: Report