Adani Power to enter into a related party deal worth Rs5,000 crore; stock trades flat

6 Jul 2022 , 11:19 AM

On Tuesday, Adani Power Limited informed that it will obtain shareholders’ approval in its ensuing general meeting on July 27, 2022, for the proposed related-party transaction worth up to Rs5,000 crore with Adani Connex Private Limited.

The ACPL is an indirect associate company of APL, and both companies are related parties as of the date of this AGM notice, it said, adding that the transaction is worth up to Rs5,000 crore and will take place during FY23.

According to the notice for AGM, the transaction involves Adani Power (APL) selling its SPVs (Special Purpose Vehicles)/ subsidiaries in which APL has acquired ownership and/or leasehold rights in land or land parcels to its related party ACPL.

It explained that the APL can facilitate new infrastructure development facilities and, as a result, monetize its experience and expertise, while also providing power solutions and related infrastructure to industrial power consumption centres set up on such lands, such as IT/ITES parks, data centres, and townships, particularly where power consumption requirements are likely to be significant.

By offering tie-ups through permitted schemes, APL can tap into captive power demand and improve the utilization and profitability of its open capacities.

Owing to group business synergies, project execution timelines will shorten, allowing ACPL to offer data centre services at competitive rates, according to the company.

At around 11.15 AM, Adani Power was trading at Rs262.55 down by Rs0.1 or 0.04% from its previous closing of Rs262.65 on the BSE. The scrip opened at Rs266.70 and has touched intraday high and low of Rs266.70 and Rs260 respectively.