Adani Power seeks merger of APML shareholding entity

Adani Power Ltd (APL), a power generation arm of Ahmedabad-based diversified business conglomerate Adani Group, is mulling to merge shareholding entity of Adani Power Maharashtra Ltd (APML) in Adani Power. The move is aimed at making APML a 100 per cent subsidiary of APL.

APL currently holds 74 per cent stake in APML, a joint venture company floated to execute 3300 Mw power project at Tiroda in Maharashtra. Adani Power did not disclose the name of its JV partner in APML, which it plans to merge with it. However, as per Adani Power's Red Herring Propspectus filed with Securities and Exchange Board of India (SEBI) Millennium Developers hold 26 per cent in APML. "In order to hold 100% of Adani Power Maharashtra Limited (as against current holding of 74%), it is decided to evaluate the proposal to merge 26% shareholding entity of Adani Power Maharashtra Limited in Adani Power Limited subject to necessary permission and approvals in this regard," Adani Power said in a filing to BSE. The shareholding entity of APML will be offered shares of Adani Power post its merger with power generation arm of billionaire Gautam Adani promoted Adani Group.

Meanwhile, Adani Power Ltd has posted a net profit of Rs 125.84 crore for the quarter ended September 30. Net sales during the quarter stood at Rs 395.16 crore. The figures are not comparable on a year-on-year basis as Adani's Mundra production unit had not started power generation during the corresponding quarter last fiscal.