Multibagger Adani Power’s shares jump over 4%; here's why
Adani Power jumped 4.2% on Wednesday to hit the day's high of Rs 544.25 on the NSE after the Indian competition watchdog cleared Adani Power's proposed acquisition of Lanco Amarkantak Power.
Adani Power proposes to acquire 100% share capital and control of Lanco Amarkantak Power, pursuant to the corporate insolvency resolution process (CIRP) initiated under the Insolvency and Bankruptcy Code, 2016 (IBC), according to a release. Insolvent Lanco Amarkantak Power is engaged in the business of thermal power generation.
On March 5, Adani Power announced it received the creditors' approval for the resolution plan to acquire insolvent Lanco Amarkantak Power.
«The proposed transaction does not result in an appreciable adverse effect on competition in any plausible relevant market in India,» the Competition Commission of India (CCI) said.
Adani Power is engaged in the business of thermal power generation in India.
The multibagger stock has delivered returns of 191% over the past 12 months which marks a significant outperformance over Nifty.
The Adani Group company reported a multifold jump in its consolidated net profit at Rs 2,738 crore for the quarter ended December. The same stood at just Rs 9 crore in the same period last year. Revenue from operations jumped 67% year-on-year (YoY) to Rs 12,991 crore in the October-December period, compared with Rs 7,764 crore in the corresponding period of last year.
EBITDA for the reporting quarter more than doubled to Rs 5,059 crore against Rs 1,996 crore in the same quarter
