Adani Group’s energy arm, Adani Power, has secured a green signal from the committee of creditors to acquire a subsidiary of Reliance Power, Vidarbha Industries Power (VIPL). The company in a statement on Monday mentioned that it has bagged a letter of intent from resolution professional to purchase VIPL, which is currently undergoing insolvency procedures under the Insolvency and Bankruptcy Code (IBC) 2016, has an operational capacity of 600 MW thermal power.
“Committee of creditors (COC) of Vidarbha Industries Power, a company undergoing corporate insolvency resolution process...has approved the resolution plan submitted by Adani Power. APL has received a letter of Intent (LOI) from the Resolution Professional (RP),” said the company in an exchange filing on NSE.
The company will now move forward to get other necessary approvals to complete the acquisition process, including the National Company Law Tribunal’s nod.
Adani Power Eyes Acquisition to Cement Dominance
This development comes at a time when Adani Group is making major acquisition moves to strengthen its power business. The power-to-port conglomerate last acquired Dahanu Power for Rs 815 crore.
“The acquisition of ADTPS will enable consolidation of thermal power generation capacities of Adani portfolio companies under one umbrella to maximise synergistic benefits and leverage,” said Adani Power in a statement earlier.
Prior to this, Adani Power acquired Chhattisgarh-based Lanco Amarkantak Power Limited (LAPL). After getting NCLT’s approval, Adani Group’s flagship power company also purchased Tamil Nadu-based Coastal Energen for Rs 3,330.88 crore.
The company recorded an increase in its net profit by 7.4% from Rs 2,737 crore in Q3 FY24 to Rs 2,940 crore in Q3 FY25. Revenue for the same period was up by 5.2% to Rs 13, 671.2 crore.
To pump more funds into the power business, the board of Adani Power approved a fund raising of Rs 5,000 crore via qualified institutional placement (QIP).
