Adani Power shares jump 2% after NCLT approval to acquire Lanco Amarkantak Power for ₹4,101 cr

The upswing in shares came a day after the company received approval from the National Company Lat Tribunal (NCLT) to acquire Lanco Amarkantak Power Ltd (LAPL).

Adani Power's stock opened in the green, with the scrip valued at ₹687 on the NSE at the opening bell. This was up 1.9% as against the last closing price.

The stock shortly peaked to a high of ₹689, marking a gain of 2.2% as compared to the previous session's close.

Acquisition of Lanco Amarkantak

Adani Power on Thursday said the NCLT Hyderabad bench has approved its plan to acquire LAPL for an upfront payment of ₹4,101 crore.

LAPL is undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, a BSE filing said.

According to the filing, the acquisition shall be subject to the satisfaction of conditions precedent mentioned under the resolution plan.

Adani Power will acquire 100% shareholding in the LAPL for a cash consideration, the filing said.

LAPL owns and operates a 2x300 MW (600 MW) thermal power plant (Phase-I) at Pathadi Village in Korba District of Chhattisgarh.

The majority of the power generated from the Phase-I capacity is supplied to Haryana and Madhya Pradesh Discoms under long-term power purchase arrangements through Power Trading Corporation Ltd.

It has 2.784 MMT of long-term fuel supply agreement with Coal India Limited's subsidiary South Eastern Coalfields Ltd (SECL).

LAPL is also setting up a 2x660 MW (1320 MW) expansion capacity under Phase II.

The acquisition is to be completed within 60 days from the date of the National Company Law Tribunal’s approval order.

Successful acquisition and implementation of the resolution plan for the acquisition of LAPL will advance Adani Power's position as India's leading private sector power producer, with a combined operational power generation capacity of 15,850 MW, the company stated.