Adani Power gets NCLT Nod to Acquire Lanco Amarkantak for Rs. 4,101 Cr.
Adani Power Limited has received the approval of National Company Law Tribunal (NCLT) for acquiring Lanco Amarkantak Power Ltd. (LAPL) for Rs. 4,101 crore. This information was shared by Adani Power in its stock filing dated 22nd August 2024.
This acquisition is expected to be completed within 60 days of NCLT’s approval, that is by 20th October 2024. After completion of this acquisition, Adani Power will have the 100% ownership of Lanco Amarkantak Power Ltd.
Lanco Amarkantak’s Insolvency and Adani Power’s Bid Details
Lanco Amarkantak is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code.
As per an article published by Economic Times dated 22nd August 2024, Lanco Amarkantak owes about Rs. 14,631 crore to its financial creditors. Major creditors include Power Finance Corporation, Rural Electrification Corporation, IDBI Bank, Indian Overseas Bank, Axis Bank, and Life Insurance Corporation of India.
In February 2024, Adani Power had emerged as Lowest (L1) bidder for the acquisition of Lanco Amarkantak Thermal Power Plant.
Lanco Amarkantak’s Acquisition to Bring in Key Assests for Adani Power
Lanko Amarkantak Power Ltd. operates a 600 MW (2X300 MW) Thermal Power Plant, located in Pathadi Village in Korba District, Chhattisgarh. This is the first phase of the Thermal Power Plant while the second phase is still under construction. As per Adani Power’s stock filing ‘LAPL is also setting up 2×660 MW (1320 MW) expansion capacity under Phase-II’.
Since Adani Power is acquiring 100% ownership of Lanco Amarkantak, these Thermal Power Units will also be transferred to Adani Power after the completion of this acquisition.
The majority of power generated from phase-1 of the aforementioned Thermal Power Plant is supplied to distribution companies of Haryana and Madhya Pradesh. Lanco Amarkantak has a long-term fuel supply agreement with South Eastern Coalfields Ltd. (SECL), a subsidiary of Coal India Limited.
Adani Power has mentioned cash as the mode of payment for acquiring Lanco Amarkantak Power Limited.
Adani Power Limited: Adani Power Ltd., a subsidiary of Indian conglomerate Adani Group, is a power generation company with head office at Khodiyar in Ahmedabad, Gujarat.
