Gautam Adani, one of the richest men in India, continues to expand his business empire. He leads the Adani Group which is present in several sectors, including ports, airports and power. The billionaire is planning to take another step in the power sector. His Adani Power, which has a market cap of Rs 269000 crore, is planning to acquire Butibori Thermal Power Plant located in Nagpur, Mint reported.
The report said that the deal is expected to be valued between Rs 2,400 crore and Rs 3,000 crore. Adani Group is talking to CFM Asset Reconstruction Company, which is the only lender to the power project.
The power plant was once owned by Anil Ambani's bankrupt Reliance Power. It is now under Vidarbha Industries Power, a subsidiary of Reliance Power. The power generation capacity of this plant is 600 MW. After this news, Reliance Power shares hit an upper circuit of 5 per cent on Monday (August 19). It closed at Rs 32.79 on NSE on Monday.
If the deal is completed, Gautam Adani will further strengthen his hold in the power sector. "Adani Power is negotiating with CFM Asset Reconstruction Co to acquire the project under Vidarbha Industries Power Ltd. The value of the project, which consists of two power plant units, was earlier around Rs 6,000 crore, but currently, the production (power generation) has stopped; so, the valuation has to be lower. The plant fits into Adani’s strategy,” the report quoted an official as saying. The plant has been closed since January 2019.
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