Adani Power gets ‘CRISIL A' rating on its proposed bank facilities; stock gains ~1%

19 Sep 2022 , 10:14 AM

Adani Power Limited informed that the rating agency CRISIL Ratings has assigned a ‘CRISIL A/Stable’ rating to the proposed bank facilities of the company that will be put in place upon completion of the scheme of amalgamation, which is currently under approval.

Following the approval of the Company’s board of directors’ amalgamation scheme, it has started the process of combining six of its fully owned operating subsidiaries with itself, subject to the necessary clearances.

Upon conclusion of the planned merger, the aforementioned rating will apply to the combined bank credit facilities of these subsidiaries and the company, said Adani Power in its regulatory filing.

The rating considers the company’s strong market position, long-term power selling agreements, domestic fuel supply arrangements, diversified generating portfolio with locational advantage, and broad counterparty mix.

The rating also considers, among other things, enhancing business and operating performance, resolving numerous regulatory difficulties, resolving issues connected to Power Purchase Agreements of 2,434 MW capacity, debt reduction, and the proposed merger.

At around 10.17 AM, Adani Power was trading at Rs390.80 up by 0.77% from its previous closing of Rs387.80 on the BSE. The scrip opened at Rs387.60 and touched intraday high and low of Rs395 and Rs381.55 respectively.

For feedback and suggestions, write to us at [e-mail]