Following the consortium's receipt of the letter of intent to buy Coastal Energy, Adani Power shares increase

 Following the consortium's receipt of the letter of intent to buy Coastal Energy, Adani Power shares increase

Following the consortium's receipt of the letter of intent to buy Coastal Energy, Adani Power shares increase

Adani Power is a member of the consortium whose resolution plan was accepted by the Committee of Creditors (CoC) of Coastal Energy (CEPL).

On December 26, Adani Power shares increased by about 1% on the NSE after the approval of lenders for the Adani Power-led consortium to acquire the insolvent Coastal Energy. During 9:30 am, the stock was up 0.48 percent from Friday's closing, trading at Rs 515.

According to a regulatory filing on December 23, the Committee of Creditors (CoC) of Coastal Energy (CEPL) has accepted the resolution plan proposed by a consortium, of which Adani Power is a member. The resolution professional has sent a letter of intent to the consortium led by Adani Power. In accordance with the Insolvency and Bankruptcy Code, CEPL is undergoing the Corporate Insolvency Resolution Process (CIRP).

The provisions of the LOI will govern how the resolution plan is implemented, and the file now includes the approvals that NCLT and/or any other regulatory authority may be required to provide in accordance with relevant laws.

Adani Power recorded a net profit of Rs 6,594 crore in Q2FY24, an increase from Rs 696 crore in the same time last year. The revenue increased by 84% on a yearly basis to Rs 7,044 crore. For the second quarter of FY24, earnings before interest, taxes, depreciation, and amortization increased by 202% to Rs 4,336 crore.