NSE Symbol: ADANIPOWER | BSE Code: 533096
In 2018, the key products and revenue segments of Adani Power Ltd. is its power supply, which contributed Rs.9118.16 crore to sales value (82.75 % of Total Sales) last year (2017), followed by coal which contributed Rs.1704.12 crore. Other operating revenue contributed Rs.171.12 crore and fly ash, which contributed Rs 24.57 crore.
In the second quarter of 2018, Adani Power has reported a consolidated sales of Rs 3829.68 crore, which went down by 5.77 % from the last quarter sales of Rs 4064.17 crore and a whopping 31.49 % fall from last year's sales of Rs 5590.19 crore in the same quarter. As on 30th June 2018, Adani Power has a total of 3,856,938,941 outstanding shares. During this time, the Adani power share price was reported at Rs.16.15.
Adani Power Company Information and Brief History
Adani Power Ltd is involved in the business of power generation and setting up power projects. This company is an integral part of the Adani Group, focusing on the generation, accumulation, distribution and supply of power. As Adani Power deals in electricity, it attempts to explore, generate, accumulate, develop, supply and distribute power as well as deal in other forms of energy from various sources. Adani Power Ltd is presently operating a total of 10,480 MW (megawatts power) generation capacity. Their plants at Mundra in Gujarat generates 4,620 MW, 3,300 MW at Tiroda in Maharashtra, 1,320 MW at Kawai in Rajasthan, 1,200 MW at Udupi in Karnataka and 40 MW of solar power at Kutch in Gujarat. Adani Power was one of the first companies to implement and commission the 660 MW supercritical technology units in the country. Adani power share price fluctuates all the time and thus it is very important for all potential investors to keenly study the performance of the company’s shares before investing in it.
The company was incorporated by Mr. Gautam S. Adani, Mr. Rajesh S. Adani and their family members on the 22nd of August 1996 and it commenced business on the 4th of September 1996. It June 2002, it became a private limited company. Its name was subsequently named as Adani Power Pvt Ltd. In 2004, following some internal restructuring among the promoters, the whole shareholding was transferred to MPSEZL (Mundra Port and Special Economic Zone Ltd). Subsequently, in May 2006, MPSEZL transferred the shareholding to Adani Enterprises Ltd. In December 2006, the Indian Government approved the company's proposal for developing, operating and maintaining the sector-specific Special Economic Zone at Tunda, Siracha and Taluka Mundra villages in Gujarat. In February 2007, the company signed an agreement with Gujarat Urja Vikas Nigam Ltd. for the supply of power on a long-term basis. In April 2007, the company was converted into a public limited company and its name was finally modified to Adani Power Ltd.
During FY 2009-10, the company made an entry into the Capital Market with an initial public offer. More than 30 crores of equity shares of Rs.10 each were offered at the IPO at a premium rate of Rs.90 per share. Eventually, the company's shares were listed on BSE and NSE in mid-2009. In August 2009, the Adani Power share price was around Rs.103.15. Adani's power generating units of phase I commenced their commercial operations on within the first quarter of 2010. During this year, Adani Pench Power Ltd, which was earlier known as Adani Power MP Ltd, was incorporated as a completely owned subsidiary company. The company soon acquired two more companies - Kutchh Power Generation Ltd and Adani Shipping PTE Ltd by purchasing all of their shares at face value. Subsequently, Adani Shipping PTE Ltd went ahead to incorporate two shipping companies from Singapore as their wholly owned subsidiaries. During the FY 2010-11, the company's Power Generating Units of 1320 MW commenced commercial operations leading to a total power generation capacity of 1980 MW. In the next financial year, Adani set up two more subsidiaries in Panama and embarked upon various transmission line projects of nearly 3,000 km in length. The Adani power share price was around Rs.100 in the beginning of 2010, which went up to Rs.130 by the end of the year. When the FY 2010-11 ended, the Adani Power stocks were priced at around Rs.115.
In February 2012, Adani decided to consolidate the business in the transmission line business into a new entity so that they can integrate all transmission line projects that are spread across various entities under one umbrella. In the end of FY 2012-13, the Adani power share price had drastically dropped to around Rs. 40. In September 2012, Adani Power declared that their phase III power plant at Mundra in Gujarat has received carbon credits under the CDM (Clean Development Mechanism) of the United Nations Framework Convention on Climate Change. This achievement made the Mundra plant the world’s first coal-fired power project in the world to receive carbon credits. With this additional feature, the plant promises to generate about 1.8 million Certified Emission Reductions each year.
Adani Power earned Rs.600 crore by trading the carbon credits within the first ten years of its operations. In June 2013, Adani Power announced its third supercritical power plant at Tiroda in Maharashtra. With this, the company's total power generation capacity rose to 7,260 MW. The Board of Directors of approved the demerger of its transmission line business in December 2013 to its wholly owned subsidiary company. At the same time, Adani Power's state-of-the-art power plant at Mundra set a record by attaining a high power generation record of 4,644 MW, which set a milestone in electricity production, making this plant the largest and most powerful in the country. In January 2014, Adani Power announced the establishment of a 1320 MW coal-fired power plant at Kawai in Rajasthan. The project had two units of 660 MW each of supercritical technology, whose power was to be supplied to the state energy utilities of Rajasthan. In April 2014, Adani Power came up with another power plant at Tiroda in Maharashtra. During this time, the Adani Power share price was around Rs.50. With the new plant, the company emerged as the largest private power producer in the country with an overall capacity of generating 8,620 MW. The company's subsequent target is to reach the capacity of generating 20,000 MW by 2020.
In March 2015, Adani Power acquired 100% shares of Korba West Power Co. Ltd. from Avantha Power & Infrastructure. This coal-based power plant generated 600MW and had an expansion phase in progress, which was taken over by Adani Power expeditiously. The enterprise value of this deal reached Rs 4225 crore, paid by a combination of cash and acquisition debt. The financial year closed in March 2015 with the Adani Power share price at around Rs.47. Adani Power's board of directors, in January 2015, unanimously approved a demerger of the diversified businesses of Adani Enterprises Ltd, its parent company. Soon after, in April of the same year, Adani Power declared its acquisition of 100% of Udupi Power Corporation Limited' shares from Hyderabad-based Lanco Infratech Limited. This 1200MW power plant works on imported coal and comprises a captive jetty for coal imports. With this acquisition, the capacity of APL increased to 10,440 MW.
In December 2015, the company incorporated a wholly owned subsidiary called Adani Power (Jharkhand) Limited. In April 2016, the Board of Directors of Adani Power approved the issue of up to 52.30 crore warrants which could be converted into the equivalent number of equity shares of Rs.10 each.
In March 2017, Adani Power announced a new 330 MW unit its Mundra thermal power plant, which went ahead to create a national record by continuously running for 600 days and generating 4142.56 million units of electricity. In June 2017, the company approved the slump sale of the power generating business at Mundra by making it a subsidiary company named Adani Power (Mundra) Limited. The transaction put the undertaking at par with all the other operating subsidiaries of the Adani Power, with a strategic focus and specific financial arrangements. This undertaking contributed 93.74% to the company's total income in FY 2016-17. As the financial year closed in March 2017. The Adani power share price stood at Rs.39.90.
In November 2017, Adani Power's completely owned subsidiary called Adani Power (Jharkhand) Limited signed a long-term PPA (Power Purchase Agreement) for the net capacity of 1496 MW for 25 years with Bangladesh Power Development Board. In January 2018, Adani Power's Board of Directors decided to set up two Ultra-supercritical Thermal Power Project of a total capacity of 1600 MW at Godda in Jharkhand, through its subsidiary Adani Power (Jharkhand) Limited, at an estimated project cost of around Rs.13450 crore. This project is expected to be commercially operational by May 2022 and will supply power to Bangladesh Power Development Board under for a net capacity of 1,496 MW for the next 25 years.
Is Investing in Adani Power Shares a Good Idea?
Share market is undoubtedly a risky business and there is no right answer to this question. One must study the market performance trend of the company's shares in order to determine if it would be a good investment. As of the current trends of Adani Power share prices, it wouldn't be a good idea to invest it in for a long and fixed term.