According to the report, Adani Power is in conversation with Vidarbha Industries Power, a division of Reliance Power, for this acquisition that is expected to be valued between Rs 2,400 crore and Rs 3,000 crore, which equates to approximately Rs 4 crore to Rs 5 crore per MW.
Acquiring the project would enable India’s leading private thermal power producer to leverage the growing demand for electricity in the country, the report said.
The report further quoted an official as saying, “Adani Power is negotiating with CFM Asset Reconstruction Co to acquire the project under Vidarbha Industries Power Ltd. The value of the project, which consists of two power plant units, was earlier around Rs 6,000 crore, but currently, the production (power generation) has stopped; so, the valuation has to be lower. The plant fits into Adani’s strategy.”
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Currently, CFM ARC is the sole creditor of the project, having purchased its loans for Rs 1,265 crore. According to the report, the official mentioned above said that the entire deal would be funded through the internal accruals of the Adani Group.
In the last one year, the shares of Reliance Power have more than doubled, gaining 121%, while on a year-to-date basis, the stock has surged by 51%.
Meanwhile, the shares of Adani Power were trading flat at Rs 698.45 around 11 am on BSE.
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