 "Adani Power to seek shareholders' nod for related-party deal of Rs 5,000 cr")
Adani Power on Tuesday said it will seek shareholders' approval for the proposed related-party transaction worth up to Rs 5,000 crore with AdaniConnex Pvt Ltd (ACPL) during its annual general meeting on July 27.
The transaction involves sale by Adani Power (APL) of its SPVs (Special Purpose Vehicle)/ subsidiaries in which ownership and/or leasehold rights in land or land parcels have been procured by APL to its related party ACPL, according to the notice for AGM (Annual General meeting).
The ACPL is an indirect associate company of APL and both the companies are related parties as on date of this AGM notice, it said, adding that the aggregate value of the transaction is up to Rs 5,000 crore to be entered during FY23.
It explained that the APL can facilitate new infrastructure development facilities and by virtue of the same, monetise its experience and expertise, and above all of this, provide power solutions and related infrastructure to industrial power consumption centres that are set up on such land like IT/ITES parks, data centres and townships, especially where power consumption requirements are likely to be significant.
The APL can tap into the captive power demand by offering tie-ups through permitted schemes and improve utilisation and profitability of its open capacities.
The ACPL would get the advantage of complete solutions in integrated land development model offered by APL. Further, due to synergies of the group businesses, the project execution timelines will shrink, which will enable ACPL to offer data centre services at competitive rates, it said.
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