Shares of Adani Power, a part of the Gautam Adani-led conglomerate, gained 5 percent on Monday, hitting a new 52-week high in an otherwise weak market after the company said it will acquire DB Power Ltd's thermal power plant in Chhattisgarh's Janjgir Champa district.

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Adani Power will acquire the 2x600 MW thermal power plant for Rs 7,017 crore.

The DB Power owned thermal power plant had a turnover of Rs 3,488 crore for FY 2021-22. The acquisition will help India's largest private thermal power producer to expand its offerings and operations in the thermal power sector in Chhattisgarh.

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"100 percent of the total issued, subscribed and paid-up equity share capital and preference share capital of DPPL. DPPL shall hold 100 percent of the total issued, subscribed, and paid-up equity share capital of DB Power on the closing date," Adani Power said in an exchange filing.

"The initial term of the MoU shall be till completion of the acquisition on October 31, 2022, which may be extended by mutual agreement," it added.

DB Power is engaged in the business of establishing, operating, and maintaining thermal power generating stations. The turnover of DB Power during last three financial years have been Rs 3,488 crore (for FY 2021-22); Rs 2,930 crore (for FY 2020-21) and Rs 3,126 crore (for FY 2019-20), respectively.

Adani Power earlier posted a 1,619 percent year-on-year jump in consolidated net profit at Rs 4,780 crore for the first quarter ended June. The company reported a consolidated total revenue of Rs 15,509 crore for the quarter, 115 percent from the corresponding period of the preceding fiscal year.

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