Adani Power to acquire DB Power for Rs 7,017 crore
Ahmedabad, August 19, 2022
Adani Power Limited, a part of the Gautam Adani-led Adani Group, has said that it has agreed to acquire DB Power Limited at an enterprise valuation of Rs 7,017 crore.
DB Power owns and operates a running 2x600 MW thermal power plant in Janjgir-Champa district of Chhattisgarh. It had a turnover of Rs 3,488 crore in FY 2021-22, Rs 2,930 crore in FY 2020-21 and Rs 3,126 crore in FY 2019-20.
"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 company said in a filing to the stock exchanges on Friday.
Diligent Power Private Limited (DPPL) is the holding company of DB Power, and had a turnover of Rs 0.19 crore for FY 2021-22.
Adani Power said the acquisition would help it expand its offerings and operations in the thermal power sector in Chhattisgarh.
"The proposed transaction is subject to receipt of approval from the Competition Commission of India and any other approvals as may be identified following the due diligence exercise to be conducted with respect to DPPL and DB Power," the company added.
Both sides signed an agreement for the all cash deal on Friday afternoon. The initial term of the MOU shall be till completion of the acquisition on October 31, 2022, which may be extended by mutual agreement.
Adani Power will hold 100 per cent of the total issued, subscribed, and paid-up equity share capital and preference share capital of DPPL, while DPPL will hold 100 per cent of DB Power on the closing date of the transaction.
DB Power was incorporated on October 12, 2006, within the jurisdiction of the Registrar of Companies, Gwalior.