Market Performance
Adani Power's stock increased nearly 3% on February 27 for the second consecutive session. The share price climbed as much as 2.93% to ₹512.30 on the BSE, continuing its recent positive momentum. This follows a 5.8% gain in the previous trading session on February 25.
Despite this short-term rally, the stock has experienced a decline of 5% on a year-to-date (YTD) basis and a 23% drop over the past six months. Over the last year, it has fallen by 12%, although it has delivered returns of approximately 260% over two years.
Acquisition of Vidarbha Industries Power Ltd
On February 24, Adani Power announced that it had received approval from the Committee of Creditors (CoC) to acquire Vidarbha Industries Power Ltd (VIPL), a subsidiary of Reliance Power. The thermal power plant of 600 MW (2x300 MW) in Butibori, Nagpur, Maharashtra i operated by VIPL.
A Letter of Intent (LOI) was recieved by the company by the Resolution Professional overseeing VIPL became Insolvent under the proceedding of Insolvency and Bankruptcy Code (IBC) 2016. The implementation of this acquisition remains subject to regulatory approvals, including clearance from the National Company Law Tribunal (NCLT), Mumbai.
Summary
Adani Power's stock extended its rally for the second session, gaining nearly 3% on February 27. This comes after securing approval to acquire Vidarbha Industries Power Ltd, a key development in its expansion strategy. While the stock has experienced volatility in recent months, the company remains focused on strengthening its position in the power generation sector.
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