Adani Power Hits New Lifetime High on DB Power Deal; DB Corp Soars 14%
By Malvika Gurung
Investing.com -- Shares of the country’s largest private power company Adani Power (NS: ADAN ) zoomed 4.98% to Rs 432.45 apiece at 1:23 pm after jumping to a new lifetime high of Rs 432.5 apiece on Monday, extending its gaining streak for the eighth consecutive session.
The power stock hit a record high after the company announced acquiring the leading energy player DB Power from the Dainik Bhaskar Group for an enterprise valuation of around Rs 7,017 crore.
DB Power owns and runs a 1,200 MW thermal power plant in Chhattisgarh's Janjgir Champa district, and the acquisition by Adani (NS: APSE ) Power will help the latter expand its operations in the thermal power sector of Chhattisgarh.
Shares of DB Corp (NS: DBCL ) rallied 13.23% to Rs 108.25 apiece after soaring over 17% and hitting a fresh 52-week high on Monday.
The proposed transaction is subject to receipt of approval from the Competition Commission of India and any other approvals as may be identified following the due diligence exercise to be conducted with respect to DPPL and DB Power, the company added.
Both the parties signed the agreement for an all-cash deal on Aug 19 and according to the exchange filing, the initial term of the MOU shall be till Oct 31, 2022, which may be extended by mutual agreement.
Over the past three financial years, DB Power’s turnover stood at Rs 3,488 crore in FY22, Rs 2,930 crore in FY21 and 3,126 crores in FY20.
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