Adani Power shares up 14%, merger plans lent support

New Delhi, March 29

Shares of Adani Power jumped sharply on Tuesday as they extended their rally into the sixth consecutive session.

The consistent rally in the shares came at a time when the company approved an amalgamation scheme for the merger of its six wholly-owned subsidiaries with itself.

On March 22, the company, through a regulatory filing, announced about the merger plan, which is, however, subject to requisite approvals.

"The proposed amalgamation envisaged under this scheme is intended to achieve size, scalability, integration, improved controls, cost and resource use optimisation, greater financial strength and flexibility, thereby building a more resilient and robust organisation that address dynamic business situations and volatility in various economic factors in a focused manner, to achieve improved long-term financial returns," it said in the filing.

On Tuesday, the shares of the company closed 14.1 per cent higher at Rs 173.6.

Since the start of calendar year 2022, they rose over 70 per cent, exchange data showed.