Adani Power, the country's largest thermal power provider, would purchase DB Power in its whole for a total enterprise value of 7,017 crore. DB Power, a Bhaskar Group-promoted firm, owns and runs two thermal power facilities in Chhattisgarh, each having a capacity of 600 MW. Adani Power's installed thermal power capacity would increase to 14,810 MW from 13,610 MW now. A further 1,600 MW capacity is being built. The corporation stated during its annual general meeting that its goal is to reach a capacity of 16,850 MW by 2028. DB Power has long- and medium-term power purchase agreements in place for 923.5 MW of capacity, which is supported by fuel supply arrangements with Coal India. In FY22, it had a revenue of 3,488 crore.
Adani Power's consolidated revenues increased 13% to Rs 31,686 crore in FY22, while consolidated Ebitda increased 30% to Rs 13,789 crore, driven by stronger prior period income recognition and enhanced merchant tariff. Profit after tax for the company was '4,912 crore, up from '1,240 crore the previous year.
Apart from a 40 MW solar power plant in Gujarat, the company's operations are extended over Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, and Madhya Pradesh. In a regulatory filing, Adani Power stated, "The acquisition would assist the business to grow its offerings and operations in the thermal power industry in Chhattisgarh."
Adani Power revealed plans to merge six of its subsidiaries a few weeks ago. The combined company will have a total capacity of 12,450 MW spread over seven plants in six states. Adani Power will hold 100% of the total issued, subscribed and paid-up equity share capital, and preference share capital of Dilligent Power (DPPL), the holding company of DB Power. The proposed deal is subject to approval by India's Competition Commission. The original duration of the memorandum of understanding will be until October 31, 2022, with the possibility of extension by mutual consent.