Adani Power on Friday said that it would acquire DB Power, which owns and operates a 2 x 600 mw thermal power plant in Janjgir Champa district in Chhattisgarh, at an enterprise value of Rs 7,017 crore for cash consideration. DB Power had long- and medium-term power purchase agreements for 923.5 mw of its capacity, backed by fuel supply agreements with Coal India, and had been operating its facilities profitably, it added. 

“Adani Power will acquire 100 per cent of the total issued, subscribed and paid-up equity share capital and preference share capital of Diliigent Power (DPPL). DPPL is the holding company of DB Power, and had a turnover of Rs 0.19 crore in 2021-22. DPPL shall hold 100 per cent of total issued, subscribed and paid-up equity share capital of DB Power on closing date. 

About the timeline for the acquisition, the company said that the initial term of the agreement to buy should be till October 31, 2022, which may be extended by mutual agreement. The acquisition would help Adani Power expand its offers and operations in the thermal power sector in Chhattisgarh. DB Power was incorporated on October 12, 2006, within the jurisdiction of the Registrar of Companies, Gwalior. 

The turnover of DB Power during the last three financial years was Rs 3,488 crore (for FY2021-22); Rs 2,930 crore (for FY2020-21) and Rs 3,126 crore (for FY 2019-20).