Adani Power to seek shareholders' nod for related-party deal worth Rs 5k crore with AdaniConnex

Adani Power on Tuesday said it will seek shareholders' approval for the proposed related-party transaction worth up to Rs 5,000 crore with AdaniConnex Pvt Ltd (ACPL) during its annual general meeting in July 27.

The transaction involves the sale by Adani Power (APL) of its SPVs (Special Purpose Vehicle)/ subsidiaries in which ownership and/or leasehold rights in land or land parcels have been procured by APL to its related party ACPL, according to the notice for AGM (Annual General meeting).

The ACPL is an indirect associate company of APL and both the companies are related parties as of the date of this AGM notice, it said, adding that the aggregate value of the transaction is up to Rs 5,000 crore to be entered during FY23.

It explained that the APL can facilitate new infrastructure development facilities and by the same, monetize its experience and expertise, and above all of this, provide power solutions and related infrastructure to industrial power consumption centers that are set up on such land as IT/ITES parks, data centers, and townships, especially where power consumption requirements are likely to be significant.

The APL can tap into the captive power demand by offering tie-ups through permitted schemes and improving the utilization and profitability of its open capacities.

The ACPL would get the advantage of complete solutions in the integrated land development model offered by APL. Further, due to synergies of the group businesses, the project execution timelines will shrink, which will enable ACPL to offer data center services at competitive rates, it said.