Adani co to acquire DB Power for Rs 7k cr – Times of India
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DB has power purchase agreements for 923. 5 MW of its capacity, backed by fuel supply agreements with Coal India, and has been operating its facilities profitably, said Adani Group’s power arm. The deal, which requires the approvals of the country’s anti-trust agency and other regulators & stakeholders, will expand Adani’s thermal power operations in Chhattisgarh.
In 2019, Adani Power had acquired GMR Group’s 1,370MW plant in Chhattisgarh for Rs 3,530 crore. That same year, it had also bought Avantha Group’s 600MW unit in Chhattisgarh. The DB deal will further solidify Adani’s position as India’s largest private sector thermal power producer with an aggregate operating capacity of over 12,450MW, and gives it a strong presence in the country’s leading power generating and consuming belts.
DB, incorporated on October 12, 2006, posted a profit of Rs 580 crore on a turnover of Rs 3,488 crore in fiscal 2022. It is majorly (about 84%) owned by Diligent Power (an arm of Dainik Bhaskar Group) and the balance (16%) is held by infrastructure-focused private equity fund Global Infrastructure Partners. In the past, the promoters of DB Power had held discussions with Resurgent Power —-a fund sponsored by Tata Power, Canada’s CDPQ and other prominent names — to sell the Chhattisgarh unit but no deal was inked. “The initial term of the agreement (for DB) is till October this year, which may be extended mutually,” said Adani Power in a regulatory filing. A June 2022 Crisil report on DB said that the company’s business performance and financial risk profiles have improved significantly driven by multiple factors, including prepayment of debt and enhancement in the liquidity position.
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