Adani Power Limited: History, Latest Updates, Milestones, Subsidiaries & Share Price

Introduction

Adani Power Limited is part of the Adani Group and is India's largest private thermal power producer, which is a vital contributor to meeting the country's growing energy demands. The company was founded in 1996 and began its journey as a power trader but has since evolved into a major player in the power sector of India. Adani Power operates a diversified portfolio of power plants, including thermal and solar power projects, with an installed capacity exceeding 13,000 MW. The Mundra Thermal Power Plant in Gujarat, its flagship project, stands as one of the largest coal-based power plants at a single location globally.

The company has a strong footing in many states, major projects undertaken in Maharashtra, Rajasthan, Gujarat, and Karnataka. The buyout of Udupi Power Corporation and Lanco Amarkantak further consolidated their position in the industry. Initiatives by Adani Power will be in harmony with the energy transition goals by India. Cleaner and more environment-friendly technologies will be increasingly integrated into its operations.

It also gets recognition for its operational efficiency and strategic expansions. This firm continues to be one of the vital contributors to India's infrastructure growth despite the challenges that this industry is facing. Through this approach and its capacity to adapt, Adani Power has been playing a transformative role in addressing the nation's energy needs.

 

Adani Power Limited Moves In 2024

 

New Power Supply Agreement with Maharashtra: 

Adani Power and Adani Green Energy have signed a long-term agreement to sell 6,600 MW of power to the state of Maharashtra. This comprises 5,000 MW of solar power from Gujarat's Khavda and 1,600 MW of thermal power from a proposed power plant.

 

Kawai Plant Expansion Project:

Plans were revealed to increase the capacity of the Kawai power plant located in Rajasthan. The investment would be an amount of Rs. 18,000 crore by adding 3,200 MW capacity. This deal is likely to strengthen company operations in the state of Rajasthan.

 

Lanco Amarkantak Assets Acquired:

Adani Power successfully acquired Lanco Amarkantak Power Plant located in Chhattisgarh. Therefore, Adani Power added another important power plant that would increase its presence within the Indian power sector.

 

Expansion in Middle East:

A new subsidiary, Adani Power Middle East Ltd was incorporated in Abu Dhabi for exploring investment prospects in the region, with power generation and infrastructure projects.

 

Bangladesh Power Deal Review:

The company decided to reassess its proposal to provide electricity to Bangladesh, considering tax issues and other related contractual terms that had arisen, and Bangladeshi government was seeking renegotiation.

 

Adani Power's stock saw volatility following a row over irregularities in one of its solar energy projects, which damaged the market image of the company.

 

Financial Performance Highlights:

 

First Quarter FY2024:

The net profit for the company declined by 55% to Rs.3,913 crore due to fuel price increases. The revenues surged by 36% to Rs.14,956 crore with the help of higher sales of power.

 

Second Quarter FY2024:

Profits before tax declined 20%, standing at Rs.4,134 crore, following power demand reduction because of the unseasonal climate. The total revenue moved upward to Rs.13,339 crore; the net profit declined to Rs.3,331 crore as opposed to Rs.6,594 crore during the same period of the previous year.

The developments bring out that in facing market challenges, growth would come through expansion projects, financial adjustments, and international ventures for Adani Power.

 

Adani Power Share Price: Monthly Highlights for 2024

Adani Power - one of the major players in the energy sector - displayed notable fluctuations in 2024. Here is a brief review of Adani power share price movements on a monthly basis:

 

Adani Power Share Price from January to March 2024: Growth in Positive Momentum

January: Closed at Rs.600.00 amidst optimism surrounding energy projects

February: Noted a slight correction of Rs.580.00 due to market adjustments.

March: Rebounded to Rs.620.00 with the positive financial results.

 

Adani Power Share Price from April to July 2024: Growth Phase

April: Closed at Rs.640.00, on the back of renewable energy initiatives.

May: Rose to Rs.660.00, indicating positive market conditions.

June: Rose to Rs.680.00, due to strong earnings.

July: Reached a high of Rs.700.00, indicating confidence among investors.

 

Adani Power Share Price from August to December 2024: Consolidation and Downfall

August: Fell marginally to Rs.690.00, on the back of global influences.

September: Consolidated at Rs.670.00, as investor sentiment turned cautious.

October: Dropped to Rs.650.00, due to market volatility.

November: Stabilized at Rs.630.00, amidst uncertainty.

December: As of Dec 27, stood at Rs.510.00, impacted by year-end corrections.

 

Key Takeaways

Adani Power share price in 2024 reflected opportunities and challenges, with significant highs and periodic corrections. Investors should remain informed about market trends and sector developments.

Final Thoughts

The 2024 performance shows the resilience of Adani Power in a dynamic market. For accurate data and information, check the official financial sites. Never forget to consult experts before investing.

 

Evolution Of Adani Power Limited: From Past to Present

 

2006:

 Incorporation: Adani Power Ltd was incorporated as a part of the Adani Group. This was its entry into India's energy sector with thermal power generation.

2009:

 Commercial Operations: The company started commercial operations with its first 330 MW unit at the Mundra power plant in Gujarat.

2010:

 Scaling Up Mundra Plant: Adani Power expanded the Mundra plant to a total capacity of 4,620 MW, making it one of the largest single-location coal-based power plants in the world.

2011:

 Stock Market Listing: The company launched its Initial Public Offering (IPO) and was listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), raising Rs. 3,016 crore.

2012:

 Commissioning Tiroda Plant: Adani Power commenced operations at the Tiroda power plant in Maharashtra, adding 3,300 MW to its capacity.

2013:

 Kawai Plant Operationalized: The 1,320 MW Kawai power plant in Rajasthan became operational, spreading the company's footprint across northern India.

2014:

 Securing Fuel Supplies: Adani Power signed agreements to secure coal supplies, ensuring reliable fuel sources for its power generation needs.

2015:

 Acquisition of Udupi Plant: Acquired the company, Udupi Power Corporation Limited, to have a 1,200 MW capacity in Karnataka. In southern India, its scale will enhance.

2017:

 Reaching a Milestone: Became the largest private thermal power generator of India, crossing an overall installed capacity of more than 10,000 MW.

2019:

 Debt Restructuring: Improved financial restructuring by debt reduction to improve efficiency of the operation of the firm.

2020:

 Renewable Energy Commitments: The Adani Group company, Adani Power, announced a significant investment in renewable energy projects to be in line with global sustainability targets.

2022:

 Infrastructure Enhancement: Adani Power acquired Essar Power's 400kV transmission line, enhancing its transmission capability and infrastructure.

2023:

 Significant Acquisition: The company acquired Lanco Amarkantak Power Plant in Chhattisgarh, enhancing the operational power generation capacity.

 

 Key Developments:

Entered into a long-term agreement to deliver 6,600 MW of power to Maharashtra, comprising both solar and thermal energy.

An expansion project worth Rs. 18,000 crore has been announced for the Kawai plant in Rajasthan, aiming to boost its capacity by 3,200 MW.

Established Adani Power Middle East Ltd in Abu Dhabi to explore opportunities in international markets.

Achieved revenue growth amid challenges like rising fuel costs and fluctuating demand.

 

Adani Power Limited Company Information 

 

Inside Adani Power Limited

 

Allegations and Litigation

 

Bribery Investigations: US authorities have indicted Adani Group officials in connection with an alleged $250 million bribery scheme to secure favorable energy contracts in India. The said misconduct involved secret payments to officials between 2020 and 2024.

Bangladesh Contract Review: Adani Power's multi-billion-dollar deal with Bangladesh was criticized for higher-than-average costs. The company was accused by Bangladesh's interim government of not passing on tax benefits and the government sought to renegotiate the terms of the contract.

 

Operational Changes

 

Electricity Supply Cuts: Adani Power severely cut down its electricity supply to Bangladesh due to the unresolved payment disputes, and the region faced a power shortage of over 1,600 MW.

 

Corporate Actions

 

Financial Overview: On October 18, 2024, the board of the company met to adopt and approve the audited financial results.

Stock Markets: On December 26, 2024, the share price of Adani Power rose by 3.21% by closing at an intraday high of Rs.512.55, outperforming the sector average.

 

Strategic Investments

 

Partnership with Reliance Industries: Reliance Industries acquired a 26% stake in one of Adani Power's projects in March 2024. This strategic investment is expected to strengthen the project's long-term viability, pending regulatory clearances.

 

Adani Power Share Price NSE

 

Milestones of Adani Power Limited

 

1996: Adani Power Limited was formed and was the first step for Adani Group in power generation.

2006: It started building its Mundra Thermal Power Plant in Gujarat, which became the first supercritical technology-based project in India.

2009: Adani Power went public with an initial public offering on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), generating funds for the expansion plans.

2012: Mundra became India's largest privately-owned thermal power plant with an installed capacity of 4,620 MW.

2014: Adani Power entered Karnataka by acquiring Udupi Power Corporation Limited (UPCL).

2017: Adani Power acquired Korba West Power Company and added 600 MW to its portfolio, thereby making a foray into the energy sector of Chhattisgarh.

2019: Adani Power was declared as India's largest private-sector thermal power producer. The company achieved a total installed capacity of 12,450 MW.

2020: It entered the renewable energy sector and expressed its commitment to green energy initiatives and sustainability.

2022: Adani Power was able to get financial closure for its Godda power plant in Jharkhand, which is constructed to supply electricity to Bangladesh.

2024: It moved forward by developing strategic collaborations, operational performance, and international market growth.

 

Conclusion

 

Adani Power Limited has emerged as a critical player in India's energy landscape, from being a pure thermal power company to having diversified into renewables and international operations. Its outstanding accomplishments, such as managing one of the largest private thermal power plants in India and strategic acquisitions like Lanco Amarkantak, speak of its commitment to growth and innovation.

Despite challenges like regulatory issues and market volatility, the company has displayed resilience by adopting forward-looking strategies, expanding capacity, and exploring global opportunities. Recent initiatives, such as long-term power supply contracts, the Kawai plant expansion, and its entry into international markets through the Middle East, underline its forward momentum. Adani Power continues to play a pivotal role in supporting India's energy needs while contributing to a sustainable and greener future.

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Frequently Asked Questions

 

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