Adani Power to buy DB Power for ₹7,000 crore in all-cash deal.

Adani Power Ltd. (APL) recently announced the acquisition of Chhattisgarh-based thermal power plant operator DB Power Limited for an enterprise value of ₹7,017 crore in an all-cash deal.

DB Power Limited, part of Diliigent Power Private Limited (DPPL), owns and operates a 2X600 Megawatt (MW) thermal power plant in the Janjgir Champa district in Chattisgarh.

APL will acquire 100 per cent of the total issued, subscribed and paid-up equity share capital and preference share capital of DPPL.

The Gautam Adani-led APL said that the acquisition will help it to expand offerings and operations in the thermal power sector 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, a regulatory filing said.

Set up in October, 2006, DB Power is engaged in the business of establishing, operating and maintaining a thermal power generating station in Chhattisgarh.

APL has an installed power generation capacity of 12,450 MW with a presence across Gujarat, Maharashtra, Chhattisgarh, Rajasthan, and Karnataka. The company has recorded total revenues of ₹31,686 crore for the fiscal ended March 31,2022, up from ₹28,150 crore last year.

The proposed transaction is subject to receipt of approval from the Competition Commission of India and any other approvals.

HBL