You are currently viewing Adani Power gains 4%, hits new high on DB Power deal; up 47% in one month

Adani Power gains 4%, hits new high on DB Power deal; up 47% in one month

Shares of Adani Power hit all-time high today after the Adani Group firm said it would buy DB Power Limited for an enterprise value of Rs 7,017 crore. The stock touched a record high of Rs 429.65, rising 3.83 percent to the previous close of Rs 412.20. A total of 13.97 lakh shares of the firm changed hands, amounting to a turnover of Rs 59.32 crore on the BSE. Market cap of the company rose to Rs 1.64 lakh crore on BSE.

Adani Power stock stands higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages The stock has zoomed 450.87 per cent in a year and risen 327.72 per cent in 2022. The share hit a 52-week low of Rs 69.95 on August 24, 2021.

Adani Power stock stands higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages The stock has zoomed 450.87 per cent in a year and risen 327.72 per cent in 2022.

With today’s rally, Adani Power stock has zoomed 514 per cent from its 52-week low on BSE.

Adani Power aims to expand its offerings and operations in the thermal power sector in Chhattisgarh. DB Power owns and operates two units of 600 MW thermal power plant in Chhattisgarh’s Janjgir Champa District. Diligent Power (DPPL) is the holding company of DB Power.

This acquisition’s initial term of the MoU would be till October 31, 2022, but can be extended further on mutual agreement, said the firm in a filing to the exchanges.

Adani Power will own 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, it further added.

DB Power, which was incorporated in October 2006, is engaged in the business of establishing, operating, and maintaining a thermal power generating station in Chhattisgarh. It also 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.

“A number of reforms undertaken by the Indian government have strengthened the Indian power sector. These comprise fuel linkages under the Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) and the Ujwal DISCOMS Assurance Yojana (UDAY) to catalyse the transformation of power distribution companies,” Adani Power said in its FY22 annual report.

The complement of Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) for rural electrification and Pradhan Mantri Har Ghar Sahaj Bijli Yojana (Saubhagya) initiatives has been directed to enhance electricity availability to the last person through a widening network and policies directed to enhance the viability of distribution companies, the company said.

Adani Power further said that the availability of reliable and economic power supply is a major driver of comprehensive growth. It is an essential factor for improvement in the human development index and industrial growth.

Power demand in India is expected to witness sustainable growth owing to the government’s thrust on Make-in-India, growth in disposable incomes and standard of living as well as growing industrialization. India’s peak electricity demand is expected to be around 340 GW by 2030 compared to a peak demand of 203 GW in 2021 as per the Central Electricity Authority (CEA), the company said.

Read all breaking news , trending news and coronavirus news here..

Follow us on Facebook , Twitter for latest trending news !.

BY TRENDIENEWZ

Thank You

Leave a Reply