Adani Power shares in focus as CCI approves Lanco Amarkantak acquisition

Adani Power shares would be in focus on Wednesday morning after the Adani group company received nod from competition regulator Competition Commission of India (CCI) for acquiring Lanco Amarkantak Power Limited. The target company, a part of the Lanco Group, is engaged in the business of thermal power generation in India. Lanco Amarkantak Power is currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). Adani Power Ltd will be acquiring 100 per cent equity share capital in Lanco Amarkantak Power.

As per CCI, the proposed transaction does not result in an appreciable adverse effect on competition in any plausible relevant market in India. Earlier, Adani Power received the Committee of Creditors’ approval for the resolution plan to acquire insolvent Lanco Amarkantak Power. Adani Power reportedly won the bid for the debt-laden firm for Rs 4,101 crore.

The acquisition of Lanco Amarkantak, which has two units of 300 megawatt of thermal power each in Chhattisgarh, is seen expanding Adani Power’s capacity. It was Adani Power's second acquisition of assets through the IBC route this financial year after Adani Power's purchase of Coastal Energen along with Dickey Alternative Investment Trust, ET reported. Reports suggest the winning bid for Coastal Energen was to the tune of Rs 3,450 crore.

Adani Power has an installed capacity of roughly 15.2 GW, with an additional 1.6 GW under construction. This accounted for 7.1 per cent of India’s total thermal power generation capacity of 214 GW. The company’s installed capacity has grown at a 5 per ecnt CAGR from 12.4 GW in FY21 to 13.6GW at end of FY23 and is expected to reach more than 16.8 GW by FY27, Ventura Securities said earlier this year.