CCI approves Adani Power’s acquisition of of Lanco Amarkantak Power
Upstox
2 min read • Updated: March 27, 2024, 12:20 PM
Summary
Adani Power had proposed to acquire 100% share capital and control of Lanco Amarkantak, following its insolvency process under the Insolvency and Bankruptcy Code, 2016 (IBC). Shares of Adani Power surged around 3% in morning trade.
Adani Power on Tuesday received approval from the Competition Commission of India (CCI) to acquire Lanco Amarkantak Power. Earlier on March 5, Adani Power had announced the receipt of creditors’ approval for the acquisition of the bankrupt power generation company.
Shares of Adani Power were up 2.59% and were trading at ₹535.50 on the NSE on Wednesday.
Lanco Amarkantak Power is a thermal power generation company with two units of 300 megawatts each in Chhattisgarh. Adani Power had proposed to acquire 100% share capital and control of the company, following its insolvency process under the Insolvency and Bankruptcy Code, 2016 (IBC).
“The proposed transaction does not result in an appreciable adverse effect on competition in any plausible relevant market in India," the CCI noted.
In February, the CCI approved Adani Power’s acquisition proposal with Dickey Alternative Investment Trust to acquire a 100% stake in Coastal Energen. The company, which is involved in the generation and sale of power, was undergoing a Corporate Insolvency Resolution Process (CIRP) at the time of acquisition.
Adani Power, part of the diversified Adani Group, owns and operates multiple thermal power plants across Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Jharkhand, and Madhya Pradesh. The company reported nearly 70% growth in its revenue from operations, which came in at ₹13,143 crore in the third quarter of financial 2023-2024. Meanwhile, its net profit for the same period was ₹2,738 crore as compared to ₹9 crore reported a year ago.