Adani Power raises bid for Lanco Amarkantak Power in second revised offer: Report

Adani Power, India's leading private thermal power producer, has presented an improved and revised offer of ₹4,100 crore to the lenders of Lanco Amarkantak Power, reported The Economic Times.

Lanco Amarkantak Power, a thermal power company, is currently undergoing insolvency proceedings, sources familiar with the matter told ET.

ET on November 02 had said that Adani Power had offered ₹3,650 crore. The report said the unsolicited offers were made almost 10–11 months after 95% of lenders voted for a plan by the Power Finance Corp. (PFC)-led consortium.

A source told ET, “This is the second improved offer by Adani Power within six weeks, implying that it is willing to walk the extra mile to pursue lenders to sell them the distressed power company.”

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ET said Adani Power did not respond to its request for a comment. 

Yet, "Adani Power has a chance because the National Company Law Tribunal (NCLT) has not endorsed PFC-led consortium's ₹3,020 crore resolution plan," ET quoted the above source as saying.

"But it could be challenging since two debtholders are also part of the winning bidder's consortium. PFC and REC—both part of the consortium—jointly hold 41% of the debt in Lanco Amarkantak, and their consent is imperative for Adani," added the source.

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The Insolvency and Bankruptcy Code (IBC) does not prevent debtholders from bidding for a company. Anyone with over 34% debt can block a resolution; conversely, a plan is approved if 66% of lenders approve it, as reported by ET. 

Meanwhile, Adani Power shares gained sharply. In just the past week, the stock witnessed a robust rally of 21.21%, and over the last three months, it surged by an impressive 44.60%. Starting from its low point in February 2023 at ₹132.40 per share, the stock has more than doubled investor wealth, delivering a stellar return of 303%.

Also Read: Gautam Adani's wealth rises by $5.6 billion amid market rally

Regarding financials, the company reported an 848% YoY surge in its consolidated net profit to ₹6,594 crore in Q2 FY24 as compared to a net profit of ₹695.33 crore in the corresponding period of the last year, due to improved EBITDA, higher one-time income, and recognition of deferred tax asset.

Its consolidated revenue from operations rose by 61% YoY to ₹12,155 crore from ₹7,534 crore in Q2FY23. The company earned a tax credit of ₹1,371 crore during the quarter under review as against a tax expense of ₹139 crore, YoY.

Also Read: 7 of 10 Adani Group companies reported net profit growth in Q2; check full list

During Q2 FY24, the company and its subsidiaries achieved an average Plant Load Factor (“PLF") of 58.3% and a power sales volume of 18.1 billion units (“BU"), as compared to a PLF of 39.2% and a power sales volume of 11 BU in Q2 FY 2022–23.

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