2 min read Last Updated : Aug 27 2024 | 1:54 PM IST
Adani Power’s share price surged 1.56 per cent at Rs 671.75 per share on the BSE in Tuesday’s intraday deals. This came after Adani Power incorporated a wholly owned subsidiary ‘Adani Power Middle East ” in Abu Dhabi on August 26, 2024, the company disclosed in an exchange filing.
Adani Power Middle East has an authorised capital of 27,000 shares, each valued at $1. Earlier on August 22, 2024, the company had recieved another good news where the Hyderabad Bench of the National Company Law Tribunal (NCLT) approved Adani Power’s Rs 4,101 crore resolution plan to acquire Lanco Amarkantak Power Ltd (LAPL).
LAPL is undergoing the Corporate Insolvency Resolution Process (“CIRP”) under the insolvency and bankruptcy code.
The acquisition is to be completed by October 20, 2024, i.e within 60 days from the date of NCLT’s approval order, Adani Power had said.
In the April-June quarter of financial year 2024-25 (Q1FY25) Adani Power reported a significant 55 per cent drop in consolidated net profit for the June quarter, totaling Rs 3,913 crore compared to Rs 8,759 crore in the same period last year. This decline is attributed to rising expenses.
The company’s total income for the April-June 2024-25 quarter fell to Rs 15,474 crore, down from Rs 18,109 crore in the previous year. Expenses also surged to Rs 10,568.44 crore, up from Rs 9,309.39 crore a year earlier.
Despite these financial challenges, Adani Power’s consolidated power sales volume increased by 38 per cent, reaching 24.1 billion units (BU) in Q1 FY25, compared to 17.5 BU in Q1 FY24, driven by stronger power demand and enhanced operational capacity.
The company has a total market capitalisation of Rs 2.55 trillion. Its shares are trading at a price to earnings multiple of 19.52 times with an earning per share of Rs 33.89.
At 01:46 PM the shares of the company pared gains, and were trading 0.06 per cent higher at Rs 661.80 per share. By comparison the BSE Sensex was up 0.19 per cent at 81,856 levels.
First Published: Aug 27 2024 | 1:54 PM IST
https://www.business-standard.com/markets/news/adani-power-shares-surge-after-incorporating-new-unit-in-middle-east-124082700511_1.html
