Adani Power shares skyrocket to record highs: What's fueling rally?
Adani Power's shares reached a fresh record high on April 3, marking the fourth consecutive day of gains. The stock surged 5% to a record-breaking ₹617.75 on the Bombay Stock Exchange (BSE), following an 18.4% rise over the previous four trading days. This significant surge underscores the company's robust performance, with its stock leaping 15.3% this year alone and a remarkable 214% over the past year.
Adani Power outperforms major companies in market capitalization
With a market capitalization of ₹2.33 lakh crore, Adani Power now ranks as the 37th largest company listed on the BSE. This positions it ahead of notable companies such as JSW Steel, Tata Steel, Varun Beverages, Bharat Electronics, Grasim Industries, and Zomato in terms of market capitalization. Despite its substantial market footprint, Ventura Securities is currently the only broker covering the stock.
Adani Power inks 20-year power purchase agreement
Recently, Adani Power's subsidiary Mahan Energen Ltd (MEL) inked a 20-year power purchase agreement with Reliance Industries for 500 MW. A 600 MW unit from MEL's Mahan thermal power plant, part of its 2,800 MW capacity, will serve as the dedicated unit for this agreement. To comply with policy stipulations, Reliance Industries will retain a 26% ownership stake in the captive unit, equating to an investment of ₹50 crore for five crore equity shares of MEL.
Adani Power plans major expansion of power assets
Adani Power has announced plans to increase its power assets by nearly six gigawatts (GW) by 2030 to meet India's growing power needs. This expansion will be exclusively focused on thermal power derived from coal. Last month, Reuters reported that private Indian firms including Adani Power have expressed interest in constructing approximately 10 GW of coal-fired power capacity over the coming decade.
