First Ambani & Adani Pact: Reliance acquires 26% stake in Adani’s power unit for Rs 50 Cr
In a first collaboration between rival billionaires, Mukesh Ambani’s Reliance Industries has acquired a 26 per cent stake in Gautam Adani’s 600 MW Mahan Energen power unit for Rs 50 crore.
Mahan Energen Limited (MEL), wholly owned subsidiary of Adani Power Limited (APL), is engaged in generation and supply of power, and was incorporated on October 19, 2005. The turnover of MEL, as per its audited standalone financial statement, for financial years 2022-23, 2021-22 and 2020-21 was Rs. 2,730.68 crore, Rs. 1,393.59 crore and Rs. 692.03 crore, respectively.
“The proposed investment by the Company (RIL) is in compliance with the provisions of Electricity Rules, 2005 in terms of which the Company, as a captive user, is required to own 26% proportionate ownership in one unit of MEL of 600 MW capacity, with RIL being the captive user of 500 MW generation capacity. The Company and MEL have entered into a 20-year long-term power purchase agreement for this purpose,” RIL said in an exchange filing.
“The investment is not a related party transaction and none of the Company’s promoter / promoter group / group companies have any interest in the said investment,” RIL statement said. It adds, “The investment is subject to customary conditions precedent including receipt of requisite approvals by MEL and is expected to be completed within 2 weeks of receipt of completion of conditions precedent and receipt of such approvals by MEL.”
