Adani Power Secures NCLT Green Light to Acquire Lanco Amarkantak for ₹4,101 Crore Amid CIRP

Adani Power announced on Thursday that it has received approval from the Hyderabad bench of the National Company Law Tribunal (NCLT) to acquire Lanco Amarkantak Power Ltd (LAPL) for ₹4,101 crore. LAPL is currently going through the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, as mentioned in a filing with the BSE.

The acquisition is subject to certain conditions specified in the resolution plan. Once these are met, Adani Power will take full ownership of LAPL through a cash transaction.

LAPL operates a 600 MW thermal power plant (Phase-I) in Pathadi Village, Korba District, Chhattisgarh. Most of the electricity generated from this plant is supplied to the Haryana and Madhya Pradesh distribution companies under long-term power purchase agreements managed by Power Trading Corporation Ltd.

LAPL also has a long-term fuel supply agreement of 2.784 million metric tonnes (MMT) with South Eastern Coalfields Ltd (SECL), a subsidiary of Coal India Limited. Additionally, LAPL is working on expanding its capacity with a 1,320 MW (Phase-II) project.

The acquisition is expected to be completed within 60 days of the NCLT’s approval, by October 20, 2024.

This move aligns with LAPL’s core mission of power generation, which fits well with Adani Power’s business focus. The successful acquisition and implementation of the resolution plan for LAPL will strengthen Adani Power’s position as India’s leading private-sector power producer, increasing its combined operational capacity to 15,850 MW.

Moreover, the Adani Group is reportedly planning to reduce its debt by selling a portion of promoter holdings in companies like Adani Power and Ambuja Cements. According to media reports, the promoters are considering selling a 5% stake in both companies.

Following this news, Adani Power’s share price dropped by 1.2%, reaching ₹686.75.