db Power: Adani Power has extended the timeline to complete the acquisition of DB Power to December 31 | Rare Techy

Adani Power on Monday said the timeline for completion of the Rs 7,017-crore deal to acquire DB Power Ltd’s thermal power assets has been extended by a month to December 31, 2022. a month to November 30, 2022.

“The parties to the proposed transaction have agreed to extend the long-term termination date to December 31, 2022, to achieve closing/completion,” a BSE filing said.

Earlier in August this year, Adani Power has informed the exchange that it has agreed to acquire DB Power Ltd (DB Power), which owns and operates a 2×600 MW thermal power plant running in Janjgir Champa district in Chhattisgarh.

DB Power has a long-term and medium-term power purchase agreement for a capacity of 923.5 MW, backed by a fuel supply agreement with Coal India Ltd, and has been operating the facility profitably. The initial period of the MOU (memorandum of understanding) will be until October 31, 2022, which can be extended by mutual agreement, he said.

The enterprise value of DB Power is estimated at Rs 7,017 crore, subject to adjustment on the closing date, it said.

DB Power is engaged in the business of establishing, operating and maintaining a thermal power generating station in Chhattisgarh. Established on 12 October 2006 under the Registrar of Companies, Gwalior.

DB Power’s turnover for the past three financial years has been recorded at 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), respectively.

DPPL (Rajin Power Pvt Ltd) is the parent company of DB Power.