Shares of Adani Power Ltd. hit a record high after the company agreed to buy DB Power Ltd. for Rs 7,017 crore from the Bhaskar Group.
DB Power owns and operates a 1,200 MW thermal plant in Chhattisgarh. The acquisition, subject to regulatory approvals, will be completed by Oct. 31, 2022, according to an exchange filing. It would help the billionaire Gautam Adani’s company expand its operations in the thermal power sector in the state, it said.
Shares of the company rose as much as 5% to a record high of Rs 432.05 apiece as of 12:15 p.m. on Monday. That’s the eight straight session of gains. Over the last year, the stock has surged nearly 500%.
The trading volume was twice the 30-day average. The Relative Strength Index of the stock was 86, suggesting it may be ‘overbought’.