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Adani Power acquires debt-laden DB Power for Rs 7,000 crore

In an exchange filing, Adani Power said it has agreed to acquire DB Power Limited, which owns and operates a running 2x600 MW thermal power plant at District Janjgir Champa in Chhattisgarh.

ET Now Digital

Updated Aug 19, 2022, 19:56 IST

Adani Power buys DB Power

Adani Power on Friday announced it will acquire DB Power Limited for Rs 7,017 crore. DB Power, which has around Rs 5,500 crore debt, owns and operates a running 2x600 MW thermal power plant at District Janjgir Champa in Chhattisgarh.

This acquisition will help Adani power expand its offerings and operations in the thermal power sector in Chhattisgarh.

The Adani Group firm informed the stock exchanges that the acquisition does not fall within related party transactions and the promoter/ promoter group has no interest in DB Power.

In an exchange filing, Adani Power said it has agreed to acquire DB Power Limited, which owns and operates a running 2x600 MW thermal power plant at District Janjgir Champa in Chhattisgarh.

DB Power has long and medium-term Power Purchase Agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Limited, and has been operating its facilities profitably, the filing said.

Adani Power shares closed at Rs 412.20 apiece, up 3.20 percent on the BSE on Friday.

The Adani Group recently announced an investment proposal to the tune of Rs 41,653 crore for the alumina refinery. However, the Ahmedabad-headquartered ports-to-power conglomerate has bigger plans than just setting up a mega alumina refinery.

Last week, Adani Enterprises, the flagship company of Adani Group, got the approval of the Odisha government to set up two projects, including a 4 million tonnes per annum (mtpa) integrated alumina refinery. The group said these projects would generate 9,300 direct jobs.

Financial daily Business Standard quoted Hemant Sharma, Principal Secretary, Industries Department, Odisha, as saying that negotiations are on with the Adanis to forward integration into aluminium from alumina.

“Aluminium production is highly power-intensive and needs to be located close to coal and water resources. This will be at a different location,” Sharma told the daily.

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