In a filing with the exchange yesterday, Adani Power Ltd (APL) mentioned that it has sold a 100% stake in Support Properties Pvt. to AdaniConnex Pvt. at an enterprise value of Rs 1,556.5 crores. The filing further mentioned that the parties have executed a Share Purchase Agreement and concluded the transaction. Earlier in November 2022, Adani Power had entered into a memorandum of understanding pertaining to the above transaction.
The company’s stock opened its trading session at Rs 202.55 and is currently trading at Rs 196.70. Stock is down about 2.3 percent as compared to the previous closing price of Rs 201.40. The intra-day downfall for the stock was around 4 percent.
Adani Power Ltd (APL), headquartered in Ahmedabad, Gujarat, is an electricity utility that is involved in the business of operating and maintaining thermal and solar power projects. APL is amongst the largest Private sector Independent Power Producer (IPP) in the country.
The company also express their interests in various power plants under development stages. Within India, the company has operations in Gujarat, Chhattisgarh, Maharashtra, Madhya Pradesh, Rajasthan and Karnataka.
The financials of the company expresses mixed scenarios with good revenues and dipped net profits. Revenues of the company moved from Rs 7,043.77 crores in Q2 to Rs 7,764.41 crores in Q3. Net profits, on the other hand, showed an abnormal reduction in figures from Rs 695.53 crores in Q2 and dropping to Rs 8.77 crores in Q3.
Despite such a downfall in the after tax figures, the company has been able to witness an increase in the ROE and ROCE figures. ROE moved from 23.14 percent in FY20-21 to 30.87 percent in FY21-22. ROCE showed a shift from 11.63 percent in FY20-21 to 16.05 percent in FY21-22.
As of the quarter ended December 2022, promoters of the company hold a constant 74.97 percent stake. FIIs, on the other hand, have reduced their stake from 13.23 percent in Q2 to 12.88 percent in Q3.
Written by Amit Madnani
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