Adani Power inks SPAs to acquire 100% equity in two infra companies

Adani Power has inked special purchase agreements (SPAs) to acquire 100 percent equity shares in two infrastructure companies - Support Properties Private Limited (SPPL) and Eternus Real Estate Private Limited (EREPL).

SPPL will be acquired at an aggregate equity value of 280.10 crore, whereas the acquisition of EREPL will be completed an at an aggregate cost of 329.30 crore, Adani Power informed the stock exchanges.

The cash transaction is expected to be completed in two weeks, according to the regulatory filing.

Both the companies, incorporated back in 2007, are yet to start their commercial activities. The objective behind their acquisition "is to set up infrastructure facilities", Adani Power said.

SPPL has an authorised share capital of Rs 74,01,00,000 and a paid-up share capital of Rs 67,91,00,000, it added.

The acquisition "does not fall" within related party transactions, the company clarified. "Also, the promoter/promoter group/group companies of the company have no other interest in the above entities," it further stated.

Adani Power is, notably, a subsidiary of the Adani Group, which has consolidated its space in the power distribution business.

On June 3, Adani Transmission, another wing of the Gautam Adani-led conglomerate, announced the acquisition of 400kV interstate transmission line between Madhya Pradesh's Mahan and Chhattisgarh's Sipat from Essar Power Ltd for Rs 1,913 crore.

In March, Adani Power had completed the acquisition of 1,200 MW thermal power project in Mahan from Essar Power at a cost of Rs 4,250 crore.

Adani Power's shares closed today at Rs 291.40 a piece at the NSE, and Rs 291.20 at the BSE, marking a drop of around seven percent at both the exchanges as compared to the previous day's close.