Blitz Bureau
New Delhi: Adani Power Limited (APL) has been granted a Letter of Intent (LOI) to acquire Vidarbha Industries Power Limited as part of the Corporate Insolvency Resolution Process (CIRP).
The company was selected as the successful resolution applicant under the CIRP, with the Committee of Creditors approving Adani Power’s resolution plan. The Adani Group firm confirmed this development in a regulatory filing.
“The Committee of Creditors of Vidarbha Industries Power, which is undergoing insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, has approved the Resolution Plan submitted by Adani Power,” APL stated in its filing.
Following this approval, Adani Power received the LOI from the Resolution Professional on February 24, 2025. However, the completion of the acquisition remains subject to necessary approvals from the National Company Law Tribunal (NCLT), Mumbai, and other regulatory bodies. The resolution plan will be executed in compliance with the terms outlined in the LOI and applicable legal requirements.
Vidarbha Industries Power operates a 2×300 MW thermal power plant in the MIDC Industrial Area of Butibori, Nagpur.
Meanwhile, Adani Power recently reported a 7.4% increase in net profit for Q3 FY25, reaching ₹2,940 crore compared to ₹2,738 crore in the same period last year. The company’s consolidated EBITDA also saw a 23% rise to ₹6,185 crore in Q3 FY25 from ₹5,009 crore in Q3 FY24, driven by higher one-time income.
In a boost to its financial standing, Crisil Ratings recently upgraded its rating on Adani Power’s long-term bank facilities to ‘Crisil AA/Stable’ from ‘Crisil AA-/Positive’. Additionally, the rating agency assigned the same rating to ₹11,000 crore worth of proposed non-convertible debentures (NCDs).
Global brokerage firm Jefferies has also initiated coverage on Adani Power, assigning a ‘buy’ rating with a target price of ₹660, implying a potential 30% upside from current levels.
