Mahan Energen Limited ("MEL"), wholly owned subsidiary of Adani Power Limited ("APL" or the "Company") had entered into a 20-year long-term Power Purchase Agreement ("PPA") for 500 MW with Reliance Industries Limited ("RIL"), under the Captive User policy as defined under the Electricity Rules, 2005.
One unit of 600 MW capacity of MEL's Mahan thermal power plant, out of its aggregate operating and upcoming capacity of 2800 MW, was designated as the Captive Unit for this purpose. In order to avail of the benefit under the said policy, RIL has to hold a 26% ownership stake in the Captive Unit in proportion to the total capacity of the power plant.
In furtherance of the above, upon completion of all the conditions precedent mentioned under the Investment Agreement dated 27th March 2024, RIL has subscribed to, and MEL has issued and allotted to it 5,00,00,000 "Class B" equity shares with face value of Rs. 10 each, translating to 26% proportionate ownership stake in the Captive Unit.
This allotment will enable RIL to source reliable power supply from the Captive Unit under the exclusive arrangement between the two corporates and demonstrate the advantage of this mutually beneficial arrangement by enhancing MEL's long-term revenue visibility.
Consequent to this issuance, MEL has now ceased to be a wholly owned subsidiary of APL.
Shares of Adani Power Limited was last trading in BSE at Rs. 725.35 as compared to the previous close of Rs. 697.95. The total number of shares traded during the day was 5943408 in over 22907 trades.
The stock hit an intraday high of Rs. 745.00 and intraday low of 696.00. The net turnover during the day was Rs. 4332150718.00. |
