Adani Power to acquire 100% stake in GMR Chhattisgarh Energy
Adani Power Limited’s resolution plan to acquire controlling equity stake and restructure debt in GMR Chhattisgarh Energy Limited (GCEL) has been approved through the Letter of Intent (LOI) issued dated June 24, 2019 by the consortium of lenders led by Axis Bank, which is acting as the lead lender.
The resolution plan was submitted by Adani Power in response to an invitation issued on behalf of the lenders of GCEL seeking bids for acquisition of controlling equity stake and restructuring of debt of GCEL. Post the transaction, Adani Power Limited shall hold 100 per cent equity stake in GCEL. Of this, 52.38 per cent stake is to be acquired from the lenders and the balance 47.62 per cent is to be acquired from the GMR Group.
GCEL owns an operational 1.370 megawatt (MW) supercritical thermal power plant in Raikheda, Raipur district, Chhattisgarh. The plant consists of two units of 685 MW each, which were commissioned in June 2015 and April 2016.
On April 8, 2019, upon approval of the resolution plan by the committee of creditors of Korba West Power Company Limited (KWPCL), Adani Power had announced the receipt of LOI for KWPCL, which owns a 600 MW thermal power plant at Raipur, Chhattisgarh.
With the successful acquisition of GCEL and KWPCL, Adani Power’s position will get stronger in the private sector thermal power segment, with combined thermal power capacity of 12,410 MW. Further, this reaffirms its credentials in development and operation of greenfield projects, and also successfully turning around brownfield acquisitions.
On Wednesday, the stock of Adani Power opened at Rs 50.95 and closed at Rs 51.30, up by 1.58 per cent over the previous close of Rs 50.50.