Gautam Adani, a leading Indian billionaire and head of the Adani Group, is set to expand his business empire further. The Adani Group operates in various sectors such as ports, airports, and power. Now, Adani Power, a major player in the power industry with a market value of Rs 269,000 crore, is planning to acquire the Butibori Thermal Power Plant in Nagpur.
Details of the Deal
According to reports, the deal is estimated to be worth between Rs 2,400 crore and Rs 3,000 crore. Adani Power is negotiating with CFM Asset Reconstruction Company, the sole lender to the power project.
The Butibori Thermal Power Plant was formerly owned by Reliance Power, led by Anil Ambani. However, the plant is currently under Vidarbha Industries Power, a subsidiary of Reliance Power. The plant, which has a generation capacity of 600 MW, has been non-operational since January 2019.
Impact on Adani Group
If the acquisition goes through, Gautam Adani will enhance his influence in the power sector. An official noted that while the project was previously valued at around Rs 6,000 crore, its current value has decreased due to its halted operations. Despite this, the plant aligns with Adani Group’s strategic goals.
Market Reaction
Following the news, shares of Reliance Power hit the upper circuit limit of 5% on August 19, closing at Rs 32.79 on the NSE.
