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Tag: Adani Power

  • Adani Power Shares Jump 29% On Morgan Stanley’s ‘Overweight’ Call

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    Mumbai:

    Shares of Adani Power Ltd (APL) surged in the morning trade on Friday after global brokerage Morgan Stanley initiated ‘Overweight’ on the company with a target price of Rs 818, projecting an upside of 29 per cent from its previous closing price.

    The brokerage said in a note that Adani Power is “a good illustration of turnaround in India’s corporate history, with resolution on most regulatory issues and multiple value-accretive acquisitions”.

    “APL will deliver strong earnings growth driven by timely completion of projects and more PPA wins medium term. Initiate at OW (Overweight) and Top Pick,” said the brokerage.

    New coal power purchase agreements (PPAs) should improve investor confidence in earnings power, Morgan Stanley added.

    It also forecast that the company’s capacity and earnings before interest, taxes, depreciation and amortisation (EBITDA) will rise 2.5 times and 3 times by the financial year 2033, respectively.

    “We believe coal holds the key to India’s energy security, with nuclear being a driver in the next decade. India is looking to add 80GW of coal by F32; there is currently a large power purchase agreement (PPA) pipeline of 20GW,” according to the note.

    The stock was trading about 7-8 per cent up in the morning trade. Shares of Adani Power ended the previous session 0.5 per cent up.

    Adani Ports is India’s largest independent power producer and second-largest power producer (after NTPC) with 8 per cent share in both coal and generation.

    “We forecast its market share to reach 15 per cent by F32e with a 41.9GW portfolio (2.5x vs F25). APL has seen favourable resolution of most regulatory issues and has a strong balance sheet (F25 net debt/EBITDA: 1.5x). We expect 60-65 per cent of its US$27 billion capex for a 23.7GW addition to be met through internal accruals,” said the brokerage.

    Incrementally timely project completions (land acquired, boiler- turbine-generator orders placed, construction execution by Adani Group, and lower external debt) combined with PPAs getting signed would drive earnings.

    “We see upside to our estimates if APL’s merchant portfolio declines from 20 per cent currently, and profitability in recently acquired 2.9GW power plants improves,” the brokerage note said.

    (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

    (Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)


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  • Adani Power To Supply Power From Greenfield 1,600 MW Thermal Plant In Madhya Pradesh

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    Ahmedabad:

    In a first-of-its-kind adoption of the greenshoe option in a thermal power tender in India, Adani Power Ltd (APL) on Thursday said it has been awarded a total of 1,600 MW capacity by MP Power Management Company Limited (MPPMCL) under the recently concluded tendering process.

    India’s largest private sector thermal power generator received a Letter of Award (LoA) from MPPMCL, awarding 800 MW additional capacity under the ‘Greenshoe Option’.

    Both the units (800MW X 2), in Anuppur district of Madhya Pradesh, will be commissioned within 60 months of the appointed date. The company will invest around Rs 21,000 crore towards setting up the plant and related infrastructure

    The project is expected to generate direct and indirect employment of 9,000–10,000 during the construction phase and 2,000 once in operation.

    According to the Adani Group company, this comes on the back of APL’s earlier success in winning an initial 800 MW capacity in the same bidding process.

    This is the fifth major power supply order received by the company in the last 12 months, taking the total awarded capacity to 7,200 MW.

    “We are delighted that Adani Power has not only secured the initial 800 MW project in Madhya Pradesh but has also been awarded an additional 800 MW under the greenshoe option,” said S.B. Khyalia, Chief Executive Officer of Adani Power.

    “This reinforces our commitment to providing reliable, affordable, and sustainable power to the state and its people. The project further strengthens our long-term partnership with Madhya Pradesh and highlights our dedication to supporting India’s energy security and economic growth,” Khyalia added.

    The additional capacity of 800 MW awarded is at the same tariff of Rs. 5.838/kWh, applicable to the earlier awarded 800 MW capacity.

    Accordingly, APL will supply power from a new 1600 MW (800MW X 2) Ultra-supercritical thermal power unit, to be set up under the Design, Build, Finance, Own, and Operate (DBFOO) model.

    The company said it expects to execute the Power Supply Agreement (PSA) in due course with the state Discom.

    Adani Power is currently implementing 23.72 GW of capacity addition, which will take its overall generation capacity to 41.87 GW by 2031-32.

    (Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

    (Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)


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  • Adani Offshore Investor Has Links to Adani Family

    Adani Offshore Investor Has Links to Adani Family

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    A short seller’s allegations of fraud by Gautam Adani’s conglomerate center on whether his family wielded influence over Mauritius-based investors

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  • Gautam Adani may open family office in Dubai or New York: Report

    Gautam Adani may open family office in Dubai or New York: Report

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    Asia’s richest person and world’s third richest, Gautam Adani, is considering setting up a family office overseas to manage his ballooning wealth, reported Bloomberg on Thursday while citing people familiar with the discussions.

    The chairman of the ports-to-power Adani Group conglomerate is looking at Dubai or New York as the base for the office, which will invest the Adani family’s personal funds, the Bloomberg report said. 

    The move comes amid a $59-billion surge in Adani’s personal wealth this year, according to the Bloomberg Billionaire Index.

    If Adani, whose total net worth stood at $136 billion on November 11, 2022, according to the Bloomberg Billionaire index, follows through on this plan, he’ll join a crop of ultra-rich who have family offices, including hedge fund billionaire Ray Dalio and Google co-founder Sergey Brin. Bloomberg reported last month that RIL chairman Mukesh Ambani is in the process of opening a family office in Singapore.

    Adani’s elder brother, Vinod Adani, is based in Dubai.

    On a year-to-date basis, shares of Adani Power have surged 261 per cent. It was followed by Adani Enterprises (up 135 per cent), Adani Total Gas (up 122 per cent), Adani Transmission (up 90 per cent), Adani Green Energy (up 65 per cent) and Adani Ports and Special Economic Zone (up 22 per cent). Adani Wilmar, which got listed on bourses in February 2022, has also rallied 193 so far against its issue price of Rs 230.

    ALSO READ: An Indian is leading the world’s billionaire list in terms of wealth creation in 2022

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