Adani Power Ltd. agreed to acquire DB Power Ltd. from the Bhaskar Group at an enterprise value of Rs 7,017 crore, adding to its thermal power capacity.
DB Power owns and operates a 1,200-megawatt (2X600 MW) thermal plant at Jahangir Champa district of Chhattisgarh, according to a filing by Adani Power. The project, commissioned in 2015, has long- and medium-term power purchase agreements for 923.5 MW capacity, is backed by fuel-supply agreements with Coal India Ltd. and has been operating its facilities profitably, it said.
The acquisition will help Adani Power to expand its offerings and operations in the thermal power sector in Chhattisgarh, it said.
The deal, subject to regulatory approvals from the Competition Commission of India, among others, is expected to be completed by Oct. 31, 2022. The timeline may be extended by mutual agreement of DB Power and Adani Power.
Adani Power, in the past, acquired Chhattisgarh-based power plants owned by Avantha Group’s Korba West Power Co. and GMR Chhattisgarh Energy Ltd.
The GMR Chhattisgarh Energy owned and operated a 1,370 MW (2X685 MW) power plant at Raikheda village, Raipur; while the Korba West Power has a 600 MW capacity and is building another 600 MW plant.
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