Adani Power board okays merger of six wholly-owned subsidiaries

Adani Power on Tuesday said its board has approved an amalgamation scheme for the merger of its six wholly-owned subsidiaries with itself.

"The Board of Directors of Adani Power Ltd at its Meeting held on March 22, 2022, approved, subject to requisite approvals/consents, the Scheme of Amalgamation of various wholly-owned subsidiaries of the company..," a BSE filing said.

As per the filing, the subsidiaries to be merged with Adani Power are Adani Power Maharashtra Ltd, Adani Power Rajasthan Ltd, Adani Power (Mundra) Ltd, Udupi Power Corporation Ltd, Raipur Energen Ltd, and Raigarh Energy Generation Ltd.

These companies are wholly-owned subsidiaries of Adani Power.

The Appointed Date of the scheme will be October 1, 2021. The entire assets and liabilities of these six arms will be transferred to Adani Power.

The proposed amalgamation envisaged under this scheme is intended to achieve size, scalability, integration, improved controls, cost and resource use optimisation, greater financial strength and flexibility, thereby building a more resilient and robust organisation that address dynamic business situations and volatility in various economic factors in a focused manner, to achieve improved long-term financial returns, it stated.

There will be no change in the equity shareholding pattern of the company under the scheme, as no shares are being issued by the firm in connection with the scheme, it added.

The six arms of Adani Power are also engaged in the business of generation and sale of power.