Adani Power Ltd., a leading player in the Indian power sector, has received the National Company Law Tribunal’s (NCLT) approval to acquire Lanco Amarkantak Power Ltd. for ₹4,101 crore. The acquisition, which was approved by the Competition Commission of India (CCI) in March 2024, marks a significant milestone for Adani Power as it continues to expand its thermal power generation capacity across India.
Lanco Amarkantak Power, a subsidiary of the Lanco Group, is engaged in the business of thermal power generation in India. The company operates two units of 300 megawatts (MW) each in Korba district of Chhattisgarh. Lanco Amarkantak Power was undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC) prior to the acquisition.
The acquisition process was not without its challenges. Adani Power initially submitted a resolution plan for the acquisition under the CIRP but did not receive any communication from the resolution professional. However, the company later emerged as the winning bidder after a competitive auction process that saw participation from other major players like Reliance Industries and a consortium led by Power Finance Corp.
The CCI, in its approval, noted that the proposed transaction does not result in an appreciable adverse effect on competition in any plausible relevant market in India. This paved the way for Adani Power to proceed with the acquisition, which is expected to further strengthen its position in the thermal power generation market.
Adani Power, which is part of the Adani Group, operates thermal power plants across multiple states in India, including Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Jharkhand and Madhya Pradesh. The company’s installed capacity has grown at a 5% CAGR from 12.4 GW in FY21 to 13.6GW at the end of FY23 and is expected to reach more than 16.8 GW by FY27.
The acquisition of Lanco Amarkantak Power is Adani Power’s second acquisition of assets through the IBC route in the current financial year. In October 2023, the company acquired Coastal Energen along with Dickey Alternative Investment Trust for a reported ₹3,450 crore.
Analysts believe that the acquisition will further expand Adani Power’s capacity and solidify its position as a key player in the thermal power generation market. The company’s aggressive expansion strategy, coupled with its focus on operational efficiency and cost optimization, is expected to drive its growth in the coming years.
The successful acquisition of Lanco Amarkantak Power by Adani Power under the IBC process demonstrates the company’s ability to identify and capitalize on strategic opportunities in the power sector. As the Indian economy continues to grow, the demand for reliable and affordable power is expected to rise, making companies like Adani Power well-positioned to meet the increasing energy needs of the country.
