Due to news specific to the two Adani group companies—Adani Power and Adani Ports and Special Economic Zone Ltd. (Adani Ports)—the focus of attention during Monday’s trading was on their shares. ICRA, a rating agency, has revised the long-term rating outlook for Adani Ports from “negative” to “stable” while maintaining the long-term rating of ICRA AA+. In a related development, Adani Ports announced that it had achieved the highest ranking in evaluations conducted by four international rating agencies for its environmental performance and climate action.
In accordance with the terms of the Insolvency and Bankruptcy Code, 2016, Adani Power filed a resolution plan for the acquisition of Lanco Amarkantak Power Limited under the Corporate Insolvency Resolution Process. However, the company stated that it did not receive any correspondence from the resolution professional, as “alluded to in the news reports.”
Prior to last week’s auction, a report by ET claimed that Adani Power, with an offer of Rs 4,101 crore, had emerged victorious in the bidding for the indebted Lanco Amarkantak Power. According to the ET, the two other applicants in the running, Reliance Industries and a consortium led by Power Finance Corporation (PFC), did not take part in the auction.
“Adani Power pledges to furnish stock exchanges with precise and punctual information, and will promptly announce any additional noteworthy advancement concerning the aforementioned,” the company stated.
Regarding Adani Power
Regarding Adani Power, India Ratings last week raised the credit rating from IndA/Positive to INDAA-/Stable for the term loan facilities of the company. Additionally, the credit rating given to the company’s working capital facilities has been upgraded from IndA/Positive/A1 to IndAA-/Stable/A1+.
India Ratings stated that the improvement in the rating is due to the successful resolution of significant regulatory concerns related to the Company’s power plants, the settlement of claims, the commencement of commercial activities at the Godda power plant, and sufficient coal availability for both contracted and open capacities, leading to favorable capacity utilization.
The rating, according to ir, also takes into account a number of other factors, including improvement in the receivables position, strong credit metrics, healthy counterparty diversification, adequate liquidity, and strong visibility of operating earnings due to a high degree of capacity tie-ups and domestic fuel supply tie-ups.
