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Adani to hike stake in Power arm upto 75%

Source : BUSINESS_STANDARD
Last Updated: Thu, Oct 25, 2012 20:41 hrs

Even as the power business continues to face losses for the past one year, the Adani Enterprises Limited, the parent company of the Adani Power Limited, is set to hike its stake in latter from around 68 per cent currently to 75 per cent. The board of directors of AEL, on Thursday approved the proposal to allow additional investment in Adani Power by the promoters, AEL.

"The board of Adani Enterprises Ltd has approved, in principle, the proposal to allow additional investment in Adani Power Ltd so as to enhance the total promoters' shareholding up to 75 per cent from about 68 per cent (post amalgamation), subject to compliance with applicable SEBI regulations," the company informed in a statement.

However, the company did not divulge the details of investments that would be made for raising the stake.

It may be noted that the profits of the largest private sector power producer, Adani Power has been strained due to high cost of imported coal. For the past four consecutive quarters, APL has been posting losses on the balance sheets. The company has posted net loss of Rs 225.39 crore for the quarter ended September 30, 2012.

"Our Power Generation business is presently undergoing stress due to high prices of imported coal, shortfall against linkages of domestic coal and limited availability of transmission lines," Adani group chairman Gautam Adani said in a statement.

APL, along with its subsidiaries is developing and planning power projects with a combined installed capacity of 16,500 megawatt (Mw), out of which 4620 Mw is operational, 4620 Mw is under implementation and 7260 Mw is at the planning stage, APL informed in its annual report for the year 2011-12.

The company is also expecting to expand the power generation capacity of APL to nearly 10,000 Mw by March next year. Shares of Adani Enterprises closed negative at Rs 221.90, down by 0.67 from their previous close on the Bombay Stock Exchange (BSE). Adani Power ended flat on the BSE at Rs 47.90 on Thursday.




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