Connect with us

Hi, what are you looking for?

Business

Adani Power Buys DB Power For Rs. 7,000 Crore

Adani power on Friday agreed to buy Chhattisgarh – based DB Power for Rs 7,017 crore. Read the complete article to know more about the details regarding the same.

Adani Power Buys DB Power For Rs. 7,000 Crore
Image Credits: Priyanshi Goyal

In a market where acquisition is trending, Adani Power bought a Chhattisgarh-based DB power for Rs 7,017 crore or $ 879 million. This was one to expand operations and will help Adani Group to provide feasible thermal power in Chhattisgarh. 

With the completion of a good Quarter where the Adani Power stock touched a fresh 52-week high of Rs 419 with a market capitalization of 13 digits which is Rs 1, 58,983 crores.

Now let’s look at what made Adani spend so much on a company many of us haven’t heard of.

Reasons for Adani to Aquire DB Power

Adani Power Buys DB Power For Rs. 7000 Crore
Image Credits: Priyanshi Goyal

DB power owns and operates a 2 X 600 MW thermal power plant in Chhattisgarh in the district of Janjgir Champa. They are the only known players in the thermal power market of Chhattisgarh. 

In addition to this DB, Power is an asset because they have a long and medium-term Power Purchase Agreement for 923.5 MW of the capacity which is supported by Fuel Supply Agreements with Coal India. They also have been operating profitably in the last few years.

The turnover of DB Power for the last 3 FY was Rs 3,488 for FY 2021-22, Rs 2930 crore for FY 2020-21, and Rs 3,126 crore for FY 2019-20.

Advertisement. Scroll to continue reading.

How did the acquisition take place?

According to the MOU, Adani Power will have 100% of the total issued, subscribed, and paid-up equity and preference share capital of DPPL.

DPPL is Diligent Power which is the holding company of DB power. DDPL will hold 100% of DB Power on the closing date of the transaction.

Adani Power has also informed the concerned security board about the takeover and how it doesn’t affect any other trading processes to ensure a smooth transition.

Now let’s see what a holding company is. It is a type of financial organization that has a controlling interest in many companies often called subsidiaries.

Conclusion 

Adani Power aims at establishing a monopoly in the thermal power sector and with the east in its control, its ambitions look like a dream shaping its vision into a reality.

Advertisement. Scroll to continue reading.

Source: Thehindu.com, and Business-standard.com

Written By

Rohan Gandhi is a Business and Finance News Analyst and Content Writer at Empire Weekly. He is a young content writer with inherent zen of creativity specializing in sports and financial topics, looking to make content simple and informative. Explaining content in a way readers understand.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Latest News

Box Office: Pathaan Collects Rs 700 Crore Worldwide In Just 9 Days!

Entertainment

With these figures, Pathaan has now become the highest grossing film of the newly announced YRF Spy Universe.

Pathaan Box Office: SRK Film Earns Rs 634 Crore In 7 Days, Creates New Record Pathaan Box Office: SRK Film Earns Rs 634 Crore In 7 Days, Creates New Record

Entertainment

Pathaan has collected a historic Rs 634 crore gross worldwide in the first seven days of this release, continuing it's blockbuster run at the...

Box Office: Pathaan Continues Dream Run With Rs 600 Crore Worldwide Collections Box Office: Pathaan Continues Dream Run With Rs 600 Crore Worldwide Collections

Movies

Yash Raj Films' Pathaan will cross Rs 600 crore gross worldwide by January 31 at the box office!

Advertisement

You May Also Like

Mystery and History

The great imaginative minds have given birth to some of the most legendary and eye-popping hybrid mythological creatures.

Empire Weekly Exclusive

Because of the character's widespread appeal, Iron Man has appeared in multiple comics, television series, and films.

Finance

A complete system audit of the bank's IT system has also been ordered.

Lifestyle

The main difference between online and offline learning is location. With offline learning, participants are required to travel to the training location, typically a...