Shares of Adani Power on Monday jumped 5 per cent after the firm said it will acquire DB Power at an enterprise value of Rs 7,017 crore.
The rally in the stock was in contrast to the slump in the broader market where the 30-share BSE Sensex tumbled 872.28 points or 1.46 per cent to end at 58,773.87
Shares of Adani Power on Monday jumped 5 per cent after the firm said it will acquire DB Power at an enterprise value of Rs 7,017 crore.
The stock climbed 5 per cent to settle at Rs 432.80 -- its highest permissible limit for the day -- on the BSE.
At the NSE, it jumped 4.98 per cent to Rs 432.50.
In traded volume terms, 50.59 lakh shares were traded at the BSE and over 2.45 crore shares at the NSE during the day.
The rally in the stock was in contrast to the slump in the broader market where the 30-share BSE Sensex tumbled 872.28 points or 1.46 per cent to end at 58,773.87.
Adani Power on Friday said it will acquire DB Power Ltd, which owns and operates a 2 x 600 MW thermal power plant at district Janjgir Champa in Chhattisgarh, at an enterprise value of Rs 7,017 crore for cash consideration.
DB Power has long- and medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Ltd, and has been operating its facilities profitably, it added.
"Adani Power Ltd has agreed to acquire DB Power Limited ("DB Power"), which owns and operates a running 2x600 MW thermal power plant at District Janjgir Champa in Chhattisgarh," the company said in a BSE filing.
The cost of acquisition will be at enterprise value of Rs 7,017 crore, subject to adjustments on the closing date, for cash consideration, it added.