Shares of Adani Power zoomed 17.4 per cent to Rs 60 apiece in the intra-day trade on Monday after the company’s board approved acquisition of the entire stake of Korba West Power Company limited's (KWPCL) and GMR Chhattisgarh Energy Limited (GCEL).
The stock also hit a fresh 52-week high, as it surpassed its previous high of Rs 58 recorded on December 3, 2018 on the BSE in the intra-day trade.
The company informed the exchanges that the National Company Law Tribunal (NCLT) has approved its resolution plan for acquisition of KWPCL.
"The successful acquisition and implementation of the resolution plan will consolidate the company's position as India's leading private sector thermal power producer, with a combined thermal power capacity of 12,410 MW (inclusive of the proposed acquisition of the 1,370 MW power plant of GCEL)," it said. The transaction is expected to be completed by end of July, 2019.
On June 24, a consortium of lenders led by Axis Bank had issued a letter of intent approving Adani Power's resolution plan to acquire controlling equity stake and restructure debt in GCEL.
Post the transaction, Adani Power shall hold 100 per cent equity stake in GCEL. Of this, 52.38 per cent stake is to be acquired from the lenders, and the balance 47.62 per cent is to be acquired from the GMR Group. The company said the transaction is expected to be completed before July 5, 2019.
At 02:46 pm, Adani Power was trading 14 per cent higher at Rs 58, as compared to a 0.73 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped three-fold with a combined 56.6 million shares changing hands on the NSE and BSE so far.