Adani Power shares rallied nearly 5% on February 25 after the company received a Letter of Intent (LoI) for the acquisition of Vidarbha Industries Power Ltd (VIPL). The acquisition process is part of VIPL’s ongoing insolvency resolution under the Insolvency and Bankruptcy Code (IBC) 2016, as disclosed in an exchange filing by Adani Power.
The stock slipped 1% yesterday as market sentiments were weak but finally recovered today with nearly 5% surge.
The Committee of Creditors (CoC) of VIPL has approved Adani Power’s resolution plan, marking a significant step in the acquisition process. VIPL, a Maharashtra-based power generation company, operates a 600 MW (2×300 MW) thermal power plant situated in the MIDC Industrial Area in Butibori, Nagpur.
Adani Power stated that the final execution of the resolution plan is contingent upon regulatory approvals, including clearance from the National Company Law Tribunal (NCLT), Mumbai, and other relevant authorities. The company expects to proceed with the acquisition once all necessary approvals are secured.
This development aligns with Adani Power’s expansion strategy in the thermal power sector, further strengthening its operational capacity and footprint in India’s energy market.
