Mukesh Ambani-Gautam Adani Partnership: Reliance Industries' BIG stake in Adani Group company
Reliance Industries, led by Mukesh Ambani, has made a strategic investment in Gautam Adani's power project situated in Madhya Pradesh. Acquiring a 26% stake in Mahan Energen Ltd (MEL), a subsidiary of Adani Power Ltd (APL), Reliance Industries has invested Rs. 50 crore. This investment aims to facilitate Reliance's access to electricity generated by the project for its internal consumption.
Adani Power disclosed in a BSE filing that in adherence to the policy requirements, Reliance must maintain a 26% ownership in the Captive Unit relative to the power plant's total capacity. Consequently, Reliance will procure 500 million equity shares of MEL, totaling Rs. 50 crore, to uphold its proportional ownership stake.
The project in question is a thermal power plant boasting a total capacity of 2800 MW. Of this capacity, 600 MW is earmarked for Reliance's captive use, as mandated by regulations outlined in the Electricity Rules of 2005.
This collaboration between Reliance Industries and Adani Power Ltd ensures Reliance's access to 500 MW of electricity from the project over the long term, aligning with the Captive User policy's principles. This partnership underscores the cooperative efforts of major corporations to secure a reliable and ample electricity supply to meet their operational demands.
On March 28, the stock price of Adani Power Ltd (ADANIPOWER) surged by 3.32%, closing at Rs. 533.70 per share. Adani Power's market capitalization, according to BSE, stands at Rs. 2.05 lakh crore. The trading day commenced with the stock opening at Rs. 521.95 per share, compared to the previous day's closing of Rs. 516.55 per share. Throughout the trading session, the stock hit a high of Rs. 538.50 per share and a low of Rs. 519.55 per share.
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