Adani Power, in a stock exchange filing, said that its board has approved the amalgamation of six of its wholly-owned subsidiaries with itself.
The filing noted that the board of directors of Adani Power, in its meeting on March 22, 2022, approved a Scheme of Amalgamation of six of the company’s wholly-owned subsidiaries with Adani Power.
The six companies in question are:
- Adani Power Maharashtra Ltd
- Adani Power Rajasthan Ltd
- Adani Power (Mundra) Ltd
- Udupi Power Corporation Ltd
- Raipur Energen Ltd
- Raigarh Energy Generation Ltd
The appointed date of the Scheme of Amalgamation would be October 1, 2021.
Both Adani Power and the six subsidiaries in question are engaged in the business of generation and sale of power.
“The proposed amalgamation envisaged under this Scheme is intended to achieve size, scalability, integration, improved controls, cost and resource use optimization, greater financial strength and flexibility thereby building a more resilient and robust organization that address dynamic business situations and volatility in various economic factors in a focused manner, in order to achieve improved long-term financial returns,” the Adani Power filing said discussing the rationale of the proposed amalgamation.
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No impact on shareholding pattern
There will be no change in the equity shareholding pattern of the Company pursuant to the Scheme, as no shares are being issued by the Company in connection with the Scheme, the Adani Power stock exchange filing added.
Featured photograph (source: Adani Power) shows an aerial view of the 3,300-mw Tiroda coal-based supercritical power plant in Maharashtra, owned by Adani Power Maharashtra Ltd, a wholly-owned subsidiary of Adani Power Ltd (APL). This power plant, like those owned by the five other wholly-owned subsidiaries of APL mentioned in this story, will now come directly under Adani Power Ltd.
