Adani Power Secures Intent to Purchase Vidarbha Industries Power

Synopsis

Adani Power Limited has received a Letter of Intent to acquire Vidarbha Industries Power Limited, confirming its selection as the successful resolution applicant under the Corporate Insolvency Resolution Process. The deal awaits necessary regulatory approvals.

Key Takeaways

Adani Power receives LOI for acquisition.
Selected as the successful resolution applicant.
Approval from Committee of Creditors confirmed.
Acquisition subject to regulatory approvals.
Vidarbha Industries operates a 2x300 MW thermal plant.

New Delhi, Feb 24 (NationPress) Adani Power Limited (APL) announced on Monday that it has secured a Letter of Intent (LOI) for the acquisition of Vidarbha Industries Power Limited.

The energy company was chosen as the successful resolution applicant under the Corporate Insolvency Resolution Process (CIRP) for Vidarbha Industries Power Ltd.

The Committee of Creditors has endorsed Adani Power's resolution plan, as confirmed by the Adani Group in its stock market filing.

"The Committee of Creditors for Vidarbha Industries Power, which is currently under the Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code 2016, has ratified the resolution plan presented by Adani Power," APL stated in the filing.

The firm further mentioned that APL received the Letter of Intent from the Resolution Professional (RP) on February 24, 2025, regarding this matter.

The successful completion of this acquisition is contingent on obtaining the requisite approvals from the National Company Law Tribunal (NCLT), Mumbai, and other regulatory bodies.

The execution of the resolution plan will proceed in accordance with the stipulations outlined in the LOI and relevant legal protocols.

Vidarbha Industries Power operates a 2x300 MW thermal power plant situated in the MIDC Industrial Area of Butibori, Nagpur.

Adani Power reported a 7.4 percent increase in net profit, achieving Rs 2,940 crore in Q3 FY25, compared to Rs 2,738 crore in the same quarter last fiscal year (FY24). The consolidated EBITDA for Q3 FY25 rose by 23 percent to Rs 6,185 crore from Rs 5,009 crore in Q3 FY24, bolstered by higher one-time income.

Earlier this month, Crisil Ratings elevated its rating for the long-term bank facilities of Adani Power Ltd (APL) to 'Crisil AA/Stable' from 'Crisil AA-/Positive'. The global credit rating agency has also assigned a 'Crisil AA/Stable' rating to Rs 11,000 crore proposed non-convertible debentures (NCDs) of Adani Power.

Global brokerage firm Jefferies has also commenced coverage on Adani Power Limited (APL), giving it a buy rating with a target price of Rs 660, suggesting a potential upside of 30 percent from current levels.