Shares of Lanco Infra, Adani Power gain up to 5% on power plant deal

Shares of Lanco Infratech and Adani Power gained as much as 5 per cent on Thursday following a mega deal for a power plant between the two companies.

Adani Power will acquire Lanco Infratech's 1,200 megawatt (MW) Udupi thermal plant in a deal worth over Rs 6,000 crore.

Lanco Infratech's scrip rose by 4.92 per cent to Rs 8.95 on the Bombay Stock Exchange (BSE). Similarly, shares of Adani Power gained 3.65 per cent to Rs 53.95.

Adani Power will acquire Lanco Infratech's 1,200 MW imported coal-fired Udupi thermal power plant in Karnataka. Making the announcement, Lanco Infratech said the deal is is valued at more than Rs 6,000 crore, which includes Rs 4,000 crore debt component.

This transaction will support the company in reducing its debt and will enable Lanco to receive about Rs 2,000 crore as cash and additionally, Adani Power will take Udupi plant's long-time debt of around Rs. 4,000 crore, it had said in a statement on Wednesday.