Adani Power Extends Deadline To Acquire DB Power Until End Of December

According to a statement released by Adani Power on Monday, the deadline for completing the 7,017 crore purchase contract for the thermal power assets of DB Power Ltd. has been extended by one month, to December 31, 2022. The completion date had previously been postponed by one month, to 30 November 2022.

According to a BSE filing, "Parties to the proposed transaction have mutually agreed to further extend the long stop date as December 31, 2022, for achieving the closing/completion," 

In August of this year, DB Power Ltd (DB Power) informed the stock exchanges that it will be acquiring its operating 2x600 MW thermal power plant in the Janjgir Champa district of Chhattisgarh to Adani Power.

DB Power has long- and medium-term power purchase agreements in place for 923.5 MW of its capacity, and it operates its facilities profitably. Fuel supply agreements with Coal India Ltd. serve as the foundation for these agreements.

According to the original language, the MOU's initial term is up on October 31, 2022, however, it may be extended with the consent of both parties. The enterprise value of DB Power was anticipated to be 7,017 crores, subject to adjustments on the closing date, according to the statement.

DB Power is a Chhattisgarh-based company that was founded on 12 October 2006 and is registered with the Registrar of Companies in Gwalior. Its business is the development, administration, and maintenance of a thermal power generating facility.

In the preceding three fiscal years, DB Power brought in 3,488 crores (for FY 2021-22), 2,930 crores (for FY 2020-21), and 3,126 crores (for FY 2019-20), respectively. The holding company for DB is known as DPPL (Diliigent Power Pvt Ltd).