Adani Power has received a significant order to supply 1600 MW of electricity from MPPMCL, a company of the Madhya Pradesh government. The company will invest ₹21000 crore in this project. The project is expected to create employment for approximately 10,000 people and generate b returns for investors.
Adani Share: Shares of Adani Power, an Adani Group company, experienced significant volatility on Thursday, September 11. The stock opened with gains in the early session but saw a decline of about 5% within a short period. However, the news of the company securing a new government order restored investor confidence, leading to a b recovery in its shares. The stock surged by approximately ₹50 from its lowest point.
As of 10:43 AM, Adani Power's share was trading at ₹647.85, with a gain of 2.27%.
Pressure from Block Deal, but Order Stabilized the Situation
Initially, the share faced pressure due to a block deal. According to information, a transaction of 3.71 crore shares, representing 1% of the company's equity, took place. The sale of a large volume of shares created ripples in the market. However, as soon as news of the order from the Madhya Pradesh government emerged, the stock gained momentum, and investor confidence was bolstered once again.
Adani Power Secures New Order
In an exchange filing on Thursday, Adani Power announced that the company has received a new Letter of Award (LoA) from Madhya Pradesh Power Management Company (MPPMCL) for the supply of 800 MW of electricity. This order has been issued under the Green Shoe Option.
This power supply will be generated from the 800 MW Ultra Supercritical Thermal Power Project to be established in the Anuppur district.
Total Capacity Reaches 1600 MW
Prior to this, on August 29, Adani Power had received an order from MPPMCL for the supply of 800 MW of electricity. With the addition of the new order, the total capacity now stands at 1600 MW. This will be crucial in meeting the power requirements of Madhya Pradesh.
₹21,000 Crore Investment and Thousands of Jobs
Adani Power will invest approximately ₹21,000 crore in this project and its associated infrastructure facilities.
The company stated that this project will open new avenues for employment. During the construction phase, approximately 9,000 to 10,000 people are expected to be employed, both directly and indirectly. Furthermore, after the project commences operation, at least 2,000 individuals are anticipated to secure permanent jobs.
Project to be Developed under DBFOO Model
Adani Power has informed that both units of this project will be implemented under the Design, Build, Finance, Own, and Operate (DBFOO) model.
Under this model, the company will undertake the construction, financial management, and operation of the power project itself. The electricity tariff has been set at ₹5.838 per unit (kWh).
Share Price Performance
Adani Power's shares have delivered robust returns over the past few months.
- The stock has risen by over 6% in a week.
- Delivered more than an 8% return in two weeks.
- A surge of 9% in one month.
- Strengthened by over 10% in three months.
- The stock has climbed 26% in six months.
- In the past year, the share has registered a gain of 3.12%.
These figures indicate a consistent improvement in the company's performance and sustained investor confidence in this stock.
