Ind Ra assigns rating to Adani Power's proposed bank loans at 'Provisional IND A/Positive'

20 Sep 2022 , 12:26 PM

India Ratings and Research (Ind-Ra) has rated Adani Power Limited’s (APL) proposed bank loans at ‘Provisional IND A’/Positive.

According to the rating rationale report, APL is in the process of merging six operating entities which are Adani Power (Mundra) Ltd. (APMuL), Adani Power Maharashtra Ltd. (APML), Adani Power Rajasthan Ltd. (APRL), Udupi Power Corporation Ltd. (UPCL), Raipur Energen Ltd. (REL), and Raigarh Energy Generation Ltd. (REGL) into itself.

The developmental special purpose vehicles namely Adani Power (Jharkhand) Ltd. (APJL) and Mahan Energen Ltd. (MEL) will remain APL’s 100% subsidiaries.

APL’s purpose to merge the entities is to achieve greater financial flexibility, cash flow fungibility, effective utilisation of working capital facilities, economies of scale, diversification of counterparties and cushioning the impact of any single plant on the overall financials.

Ind-Ra has, therefore, taken a consolidated view of the merged entities and the two subsidiaries while arriving at APL’s ratings.

At around 12:27 PM, Adani Power Ltd is currently trading at Rs402.95 per share up by Rs13.2 or 3.39% from its previous closing of Rs389.75 per share on the BSE.

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