Adani Power Secures NCLT Nod for ₹4,101 Crore Lanco Amarkantak Acquisition

23 Aug 2024 , 10:29 AM

On August 22, 2024, Adani Power Ltd announced the approval of its ₹4,101 Crore resolution plan to acquire Lanco Amarkantak Power Ltd (LAPL) by the National Company Law Tribunal (NCLT) Hyderabad Bench.

The NCLT issued the approval order on August 21, 2024, which was made public on the NCLT’s website the following day.

This acquisition is part of LAPL’s ongoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC).

At the time of writing on August 23, 2024 at 10:22 am, shares of Adani Power Ltd is trading at ₹681.30 which is a 1.13% gain than the previous close. Adani Power Ltd stock has gained a total of 111% in the last one year, and almost 30% since the beginning of the year.

Adani Power Ltd confirmed the NCLT’s decision in a stock exchange filing, stating that the approval pertains to the resolution plan submitted for acquiring LAPL, which is undergoing CIRP under the IBC.

LAPL owns and operates a 600 MW thermal power plant located in Chhattisgarh.

The majority of the power generated from this plant’s Phase-I capacity is supplied to Haryana and Madhya Pradesh DISCOMs under long-term Power Purchase Agreements (PPAs) through Power Trading Corporation Ltd.

LAPL has a long-term Fuel Supply Agreement for 2.784 MMT with South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Ltd.

Additionally, LAPL is in the process of setting up a 2×660 MW (1320 MW) expansion capacity under Phase II of its operations.

This acquisition will strengthen Adani Power’s position as the leading private-sector power producer in India, increasing its operational power generation capacity to 15,850 MW.

The acquisition is expected to be finalized within 60 days of NCLT’s approval, with completion anticipated by October 20, 2024.

Adani Power, a subsidiary of the Adani Group, is an Indian multinational company based in Khodiyar, Ahmedabad. It holds the distinction of being the largest private thermal power producer in the country, boasting a generation capacity of 15,250 MW. In addition to its thermal power operations, the company manages a 40 MW mega solar plant in Naliya, Bitta, Kutch, Gujarat, and is currently working on a 1,600 MW power plant in Godda, Jharkhand. Adani Power has secured long-term power purchase agreements amounting to approximately 9,153 MW with various state governments, including those of Gujarat, Maharashtra, Haryana, Rajasthan, Karnataka, and Punjab.