DB Power had recorded a turnover of Rs 3,488 crore for FY 2021-22. Diliigent Power (DPPL) is the holding company of DB Power.

DB Power has long and medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India, and has been operating its facilities profitably.

Adani Power said that the proposed transaction is subject to receipt of approval from the Competition Commission of India and any other approvals as may be identified following the due diligence exercise to be conducted with respect to DPPL and DB Power. The initial term of the MOU shall be till 31 October 2022, which may be extended by mutual agreement.

The Adani Group Company will acquire 100% of the total issued, subscribed and paid- up equity share capital and preference share capital of DPPL. The acquisition is being done at an enterprise value of Rs 7,017 crore, subject to adjustments on the closing date.

"The acquisition will help the Company to expand its offerings and operations in the thermal power sector in the state of Chhattisgarh,” Adani Power said in a statement.

Adani Power, a part of the diversified Adani Group, is the largest private thermal power producer in India.

The company reported a multi-fold jump in consolidated net profit to Rs 4,779.86 crore in Q1 FY23 as compared to a net profit of Rs 278.22 crore in Q1 FY22. Revenue from operations in first quarter stood at Rs 13,723.06 crore, up 108.9% from Rs 6,568.86 crore reported in the same period last year.