Gautam Adani gets key approval to acquire Anil Ambani’s former company, to spend Rs 4000 crore on…; its business is…

Indian billionaire Gautam Adani, the second richest man in India, continues to expand his business empire, both in the country and abroad. His Adani Group has acquired several companies and taken them to new heights. Now, Adani Group’s energy arm, Adani Power, has secured key approval from the National Company Law Tribunal (NCLT) to acquire a company, once owned by former billionaire and Reliance Group chairman Anil Ambani. Its name is Vidarbha Industries Power Ltd.

On 18 June, NCLT approved Adani Power’s Rs 4,000 crore resolution plan to acquire Vidarbha Industries Power Ltd (VIPL), a former subsidiary of Reliance Power Ltd of Reliance Group, Live Mint reported. Now, the Adani company is inches closer to acquiring the bankrupt VIPL. Adani Power was selected as the successful resolution applicant under the CIRP of Vidarbha Industries Power. 

Vidarbha Industries Power

Vidarbha Industries Power is currently undergoing a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016. Vidarbha Industries Power owns and operates a 2×300 MW thermal power plant in the MIDC Industrial Area of Butibori in Nagpur. The company has admitted liabilities of Rs 6,753 crore, and the successful resolution plan has proposed to pay Rs 4,000 crore to acquire the company. VIPL was formerly a subsidiary of Anil Ambani-owned Reliance Power, which had announced last year that VIPL was no longer its subsidiary.

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On February 24, Adani Power in its stock exchange filing had said that the lenders have approved its revival plan for the company and the ‘implementation of the resolution plan’ is subject to the ‘LOI terms as well as requisite approvals from the NCLT and other regulatory approvals’.

Adani Power

The Adani company has a market cap of Rs 2.07 lakh crore, as of June 19. The share price of the firm was Rs 533.20 on Thursday. It reported a 4 per cent year-on-year (YoY) fall in its Q4 FY25 consolidated net profit to Rs 2,637 crore as compared to Rs 2,737 crore reported in the year-ago period.