Shares of Adani Power gained more than 4% on Wednesday, March 27, after the company received approval from the Competition Commission of India (CCI) for the acquisition of Lanco Amarkantak Power Limited.
Lanco Amarkantak Power is involved in the business of thermal power generation.
The stock opened on the BSE at ₹530 apiece, up 1.55% from its previous close of ₹521.9. The stock rallied further to reach an intra-day peak of ₹544.65, reflecting a gain of 4.35% on the BSE.
The stock has gained 22% from its 52-week low of ₹166.25 on the BSE. Moreover, the stock has gained around 10% so far this year. The rally in the stock price has helped the company to command a market capitalisation of over ₹2 lakh crore. On Tuesday, Adani Power received CCI’s approval for its acquisition of Lanco Amarkantak Power Limited.
Currently, Lanco Amarkantak Power is undergoing the Corporate Insolvency Resolution Process (CIRP) as per the provisions outlined in the Insolvency and Bankruptcy Code, 2016 (IBC).
Adani Power would acquire 100% stake in Lanco Amarkantak Power.
On March 5, the Adani Group firm declared that it had obtained approval from the creditors to proceed with the resolution plan for acquiring the financially distressed Lanco Amarkantak Power.
Lanco Amarkantak possesses and manages a 600 MW thermal power plant (Phase I), consisting of two units of 300 MW each, situated in Pathadi Village, Korba District, Chhattisgarh. These units are committed to long-term Power Purchase Agreements with DISCOMs in Haryana and Madhya Pradesh.
Additionally, the company is in the process of establishing a Phase II expansion capacity, comprising two units of 660 MW each, totalling 1320 MW.
Shares of Adani Power were trading 2.83% higher at ₹536.95 apiece on the BSE at 10.10 AM.
