NCLT Approves Merger Of Adani Enterprises Arm With Adani Power’s Mahan Energen

Adani Enterprises Limited [AEL] is a part of the Adani portfolio of companies, known for their successful execution of large-scale projects in the energy and infrastructure sectors in India. AEL is recognized as India’s largest listed business incubator, with a focus on four core sectors: energy and utility, transportation and logistics, consumer goods, and primary industry. AEL has a proven track record of fostering new business interests within the Adani portfolio, nurturing them into significant and self-sustaining entities, and subsequently spinning them off into independently listed and expandable units. This strategic approach has consistently generated value for shareholders, demonstrating AEL’s expertise in creating sustainable infrastructure businesses since 1993.

Combining Adani Enterprises Arm With Mahan Energen From Adani Power

On November 7, the National Company Law Tribunal approved the merger of Mahan Energen Ltd. and Stratatech Mineral Resources Pvt., a wholly owned subsidiary of Adani Enterprises Ltd. Adani Power Ltd. is the parent company of the latter.

The NCLT order stated that “there are no adverse observations in respect of the petitioner companies as well as in respect of the scheme.” It further stated, “This Tribunal has thoroughly examined the plan and has concluded that it appears to be advantageous to the companies and will not negatively impact the interests of the companies’ shareholders in any way.

The annual coal production of Mahan Energen is 6.5 million tons

Mahan Energen, a part of the Adani Group, decided in June to merge with coal miner Stratatech Mineral Resources in an attempt to improve its fuel security. Stratatech Mineral Resources was designated to manage the Dhirauli Coal Mine. The mine can produce 6.5 million tonnes per year of coal.

Details about Mahan Energen

Mahan Energen will be able to operate the Dhirauli Coal Mine in Madhya Pradesh, which is close to the company’s thermal power plant, as a captive coal mine following the merger, providing the company with an additional supply source to support its existing coal-sourcing agreements. The business claimed that this would also help it become more cost-efficient. Mahan Energen has also suggested adding 1,600 MW to its current 1,200 MW power plant in Singrauli, Madhya Pradesh.

The stock of Adani Enterprises Ltd. is down a little today

The current price of Adani Enterprises Ltd.’s stock is Rs. 2,956.60 per share, which is lower than the previous low of Rs. 2,942.45.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.