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Adani Power Hits All-Time High After Nuclear Subsidiary Move
POWER & RENEWABLE ENERGY

Adani Power Hits All-Time High After Nuclear Subsidiary Move

Adani Power shares rose three point five per cent to an all?time high at Rs 205.5 per share and later pared gains to trade two point six five per cent higher at Rs 203.65. The movement outperformed the BSE Sensex, which was up zero point three four per cent at 78,760.82. Market participants increased buying after the company incorporated a new subsidiary focused on nuclear energy, seen as a step towards atomic power generation.

Adani Atomic Energy, a subsidiary of Adani Power, incorporated Coastal?Maha Atomic Energy to generate, transmit and distribute power derived from nuclear and atomic sources. The company was incorporated with an authorised capital of Rs 0.5 million (mn), divided into 50,000 equity shares of Rs 10 each. Coastal?Maha is owned by Adani Atomic Energy, which in turn is wholly owned by Adani Power.

Separately, rating agency ICRA assigned an ICRA AA/Stable rating to additional term loan facilities and an ICRA A1+ rating to short?term non?fund based facilities, while reaffirming existing ratings on bank facilities and non?convertible debentures. The combined rated facilities stand at approximately Rs 690 billion (bn), comprising long?term fund?based term loans of Rs 352.237 bn, long?term fund?based term loans of Rs 150.5 bn, short?term non?fund based bank guarantees of Rs 77.263 bn and NCDs of Rs 110 bn. ICRA indicated that an ICRA AA rating denotes a high degree of safety in timely servicing of financial obligations and that ICRA A1+ indicates very strong short?term capacity.

Adani Power is part of the diversified Adani Group and is the largest private thermal power producer in India. The company operates an installed thermal power capacity of 17,510 megawatt (MW) across 11 power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand and Tamil Nadu, and runs a 40 MW solar power project in Gujarat. Incorporated in 1996 and headquartered in Ahmedabad, the company was the first to set up a coal?based supercritical thermal power project registered under the Clean Development Mechanism of the Kyoto Protocol and continues to supply power to industrial and residential consumers.

Adani Power shares rose three point five per cent to an all?time high at Rs 205.5 per share and later pared gains to trade two point six five per cent higher at Rs 203.65. The movement outperformed the BSE Sensex, which was up zero point three four per cent at 78,760.82. Market participants increased buying after the company incorporated a new subsidiary focused on nuclear energy, seen as a step towards atomic power generation. Adani Atomic Energy, a subsidiary of Adani Power, incorporated Coastal?Maha Atomic Energy to generate, transmit and distribute power derived from nuclear and atomic sources. The company was incorporated with an authorised capital of Rs 0.5 million (mn), divided into 50,000 equity shares of Rs 10 each. Coastal?Maha is owned by Adani Atomic Energy, which in turn is wholly owned by Adani Power. Separately, rating agency ICRA assigned an ICRA AA/Stable rating to additional term loan facilities and an ICRA A1+ rating to short?term non?fund based facilities, while reaffirming existing ratings on bank facilities and non?convertible debentures. The combined rated facilities stand at approximately Rs 690 billion (bn), comprising long?term fund?based term loans of Rs 352.237 bn, long?term fund?based term loans of Rs 150.5 bn, short?term non?fund based bank guarantees of Rs 77.263 bn and NCDs of Rs 110 bn. ICRA indicated that an ICRA AA rating denotes a high degree of safety in timely servicing of financial obligations and that ICRA A1+ indicates very strong short?term capacity. Adani Power is part of the diversified Adani Group and is the largest private thermal power producer in India. The company operates an installed thermal power capacity of 17,510 megawatt (MW) across 11 power plants in Gujarat, Maharashtra, Karnataka, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand and Tamil Nadu, and runs a 40 MW solar power project in Gujarat. Incorporated in 1996 and headquartered in Ahmedabad, the company was the first to set up a coal?based supercritical thermal power project registered under the Clean Development Mechanism of the Kyoto Protocol and continues to supply power to industrial and residential consumers.

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