Adani Power rallies 3% on reports of likely acquisition of Korba project for Rs 4500 cr

NEW DELHI: Adani Power Ltd rallied as much as 2.9 per cent in trade on Monday, after reports suggested that it is all set to acquire Avantha group's Korba West Power, a wholly owned subsidiary of Avantha Power.

Korba West Power has an installed generation capacity of 600 MW in Chhattisgarh and is implementing another 600 MW in the second phase for an enterprise value of about Rs 4,200 crore, two persons familiar with the development told ET.

At 09:30 a.m.; Adani Power was trading 2.6 per cent higher at Rs 45.45. It hit a low of Rs 46.10 and a high of Rs 46.70 in trade today.

"Gautam Thapar-controlled Avantha Group is set to exit from the power generation business. The deal with Adani Power is almost final as both sides have agreed on the broad contours and is likely to be signed early this week," said one of the persons cited above.

For the Adani group, this acquisition will further consolidate its position as an independent power producer in the country. In April this year, the Adani group announced it had become the largest private power producer in India, with an overall installed capacity of 8,620 MW, said the report.

Billionaire Gautam Thapar, who has interests in electrical goods, engineering and paper, has been trying to reduce his group's debt by selling assets.

Earlier, Avantha demerged the consumer goods business of Crompton Greaves and sold its chemicals business to Aditya Birla Chemicals for Rs 133 crore.