Adani Power announced on Thursday that the Hyderabad bench of the National Company Law Tribunal (NCLT) has approved its plan to acquire Lanco Amarkantak Power Ltd (LAPL) with an initial payment of ₹4,101 crores. LAPL is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, as stated in a filing with the BSE.
The acquisition is subject to the fulfillment of certain conditions outlined in the resolution plan. Once completed, Adani Power will obtain 100% ownership of LAPL through an all-cash transaction.
LAPL operates a 2×300 MW (600 MW) Thermal Power Plant (Phase I) located at Pathadi Village, Korba District, Chhattisgarh.
Most of the power generated from Phase I capacity is supplied to distribution companies in Haryana and Madhya Pradesh through long-term power purchase agreements facilitated by Power Trading Corporation Ltd.
LAPL has secured a long-term fuel supply agreement of 2,784 MMT with South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Limited.
In addition, LAPL is developing an expansion capacity of 2×660 MW (1320 MW) in Phase II.
The acquisition is expected to be completed within 60 days of the approval order from the National Company Law Tribunal, i.e. on October 20, 2024.
LAPL’s primary objective, power generation, aligns with the company’s core business focus.
The successful acquisition and implementation of the resolution plan of LAPL will strengthen APL’s position as India’s leading private sector power producer with a combined operational capacity of 15,850 MW, the statement said.
Additionally, Adani Group plans to reduce its debt by reducing promoters’ stakes in companies such as Adani Power and Ambuja Cements, according to media reports.
According to the report, the promoters of Adani Group are considering selling a 5 per cent stake in both Adani Power and Ambuja Cements.
After the report, Adani Power Shares fell to their lowest point, falling 1.2 percent to ₹686.75.
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