Adani Power shares in focus as Adani Group firm acquires Mirzapur Thermal Energy

Shares of Adani Power Ltd will be in focus during the trading session on Thursday after the company acquired Mirzapur Thermal Energy, as its subsidiary. The Adani Group's utility arm informed about the same to exchanges through exchange filing on Wednesday after the market hours.

"We would like to inform you that the company has been allotted 50,00,000 equity shares of Rs 10 each by Mirzapur Thermal Energy UP Private Limited (MTEUPL) on preferential basis resulting in a 99.8 per cent equity stake in MTEUPL. Consequently, MTEUPL has become a subsidiary of the company," said Adani Power in its exchange filing.

Shares of Adani Power settled at Rs 726.15 on Wednesday, rising about one-third a per cent for the day. The total market capitalization of the company stood at Rs 2.80 lakh crore. The stock has corrected about 20 per cent from its highs at Rs 896.75 hit on Monday, June 03.

Before allotment of equity shares of MTEUPL to the Adani Power, MTEUPL was a wholly owned subsidiary of Adani Infra (India)  (AIIL), which is the related party to Adani Power, the exchange filing said. The objective is to set up infrastructure facilities and capacity augmentation of Adani Power.

MTEUPL has an authorized share capital of Rs 5.25 crore with a paid-up share capital of Rs 5.01 crore. The company is yet to commence commercial activities, the exchange filing added. However, the company is involved in the infrastructure development business.