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Construction : Deals | June 2013 | Source : Construction Update

Adani Power promoters to up stake to 74.99 per cent

Adani Enterprises (AEL) and Vinod Advani, part of Adani Power's promoter group, will increase their stake in the company by nearly 5 per cent to 74.99 per cent just shy of regulatory norms for the maximum allowed private ownership in a listed entity. The exercise will happen through a share issuance that will inject Rs 2,542.11 crore of fresh capital into the debt-saddled power producer. AEL had cash and cash equivalents of Rs 7,074.23 crore on a consolidated basis at the end of March, 31, 2013.

The issue price of Rs 53.11 is at an 8 per cent discount to the stock's closing price of Rs 57.80 on May 27. With the new issue, the total number of shares outstanding in Adani Power will increase to 287,19,22,110 from 239,32,72,110 earlier.

While holding company AEL has been allotted 44.98 crore shares, Vinod Adani has been allotted 2.88 crore shares. The Adani Power stock has seen a sharp run-up this month, rising from Rs 47 in mid-May to around Rs 58, fuelled by hopes that the company will soon benefit from an order by central electricity regulator CERC that awarded it compensatory tariff to account for increased fuel costs.

Adani Power, which reported its sixth consecutive consolidated loss of Rs 586 crore in the fourth quarter, had total non-current liabilities of around Rs 34,908.28 crore and current liabilities of Rs 15,762.77 crore at the end of March, 2013.

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