New Delhi: Adani Power on Friday said it will acquire DB Power Ltd, which owns and operates a 2 x 600 MW thermal power plant at district Janjgir Champa in Chhattisgarh, at an enterprise value of Rs 7,017 crore for cash consideration.

DB Power has long- and medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Ltd, and has been operating its facilities profitably, it added.

"Adani Power Ltd has agreed to acquire DB Power Limited ("DB Power"), which owns and operates a running 2×600 MW thermal power plant at District Janjgir Champa in Chhattisgarh," the company said in a BSE filing.

The cost of acquisition will at enterprise value of Rs 7,017 crore, subject to adjustments on the closing date, for cash consideration.

Adani Power will acquire 100 percent of the total issued, subscribed and paid up equity share capital and preference share capital of Diliigent Power Private Limited (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 percent 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 the initial term of the agreement to buy shall be till October 31, 2022, which may be extended by mutual agreement.

The acquisition will help Adani Power expand its offerings and operations in the thermal power sector in the state of Chhattisgarh.

DB Power was incorporated on October 12, 2006, within the jurisdiction of the Registrar of Companies, Gwalior.

The turnover of DB Power during last three financial years was Rs 3,488 crore (for FY 2021-22); Rs 2,930 crore (for FY 2020-21) and Rs 3,126 crore (for FY 2019-20).

DPPL was incorporated on May 13, 2010, within the jurisdiction of the Office of the Registrar of Companies, Gwalior, Madhya Pradesh.

(With PTI inputs)

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