Here's why Adani Power's shares are in news today; check details

Shares price of Adani Power rose as much as 2.24 per cent at Rs 689 per share on the BSE in Friday’s intraday deals. The Adani share price soared after the Hyderabad Bench of the National Company Law Tribunal (NCLT) approved Adani Power's Rs 4,101 crore resolution plan to acquire Lanco Amarkantak Power Ltd (LAPL).

The order, issued on August 21, 2024, was made available on the NCLT’s website the following day, the company said in an exchange filing. 

“The object of the LAPL, being generation of power, is on the same line with the main line of business of the Company. Successful acquisition and implementation of the resolution plan for acquisition of LAPL will advance APL's position as India's leading private sector power producer, with a combined operational power generation capacity of 15,850 MW,” Adani Power said on Thursday.

 

LAPL is undergoing the Corporate Insolvency Resolution Process (“CIRP”) under the insolvency and bankruptcy code.

The acquisition is to be completed by October 20, 2024, i.e within 60 days from the date of NCLT’s approval order, Adani Power said.

In the April-June quarter of financial year 2024-25 (Q1FY25) Adani Power reported a significant 55 per cent drop in consolidated net profit for the June quarter, totaling Rs 3,913 crore compared to Rs 8,759 crore in the same period last year. This decline is attributed to rising expenses. 

The company's total income for the April-June 2024-25 quarter fell to Rs 15,474 crore, down from Rs 18,109 crore in the previous year. Expenses also surged to Rs 10,568.44 crore, up from Rs 9,309.39 crore a year earlier. 

Despite these financial challenges, Adani Power's consolidated power sales volume increased by 38 per cent, reaching 24.1 billion units (BU) in Q1 FY25, compared to 17.5 BU in Q1 FY24, driven by stronger power demand and enhanced operational capacity.

The company has a total market capitalisation of Rs 2.63 trillion. Its shares are trading at a price to earnings multiple of 19.88 times with an earning per share of Rs 33.89. 

At 10:30 AM; the share price of Adani Power was trading 1.16 per cent higher at Rs 681.65 per share on the BSE. By comparison, the BSE Sensex was trading flat with a downward bias of 0.03  per cent at 80,005 levels.