Reliance Industries Limited and Adani Power have announced an unexpected twist that could significantly impact the energy sector. India’s wealthiest business tycoon, Ambani, has revealed the acquisition of Mahan Energen, a subsidiary of Adani Power. RIL mentioned that they will buy a 26% stake worth ₹50 crore in the 600 MW unit of Mahan Energen’s thermal power plant, a move that could potentially reshape the industry.
“One unit of 600 MW capacity of Mahan thermal power plant, out of its aggregate operating and upcoming capacity of 2,800 MW, will be designated as the captive unit for this purpose.” Adani Power stated this.
Updates On the Deal
Reliance Industries has declared an investment of Rs—50 crore to acquire five crore shares in Adani’s electricity division. The official statement disclosed that upon meeting the initial requirements, the company has taken up “Class B” shares, each with a nominal value of Rs. 10, in Mahan Energen Limited (MEL), totalling an investment of Rs. 50 crores. These shares offer significant control over the organisation as they offer multiple votes per share. Further, Class B shares can be converted to Class A shares but not vice versa.
Also read, Adani’s Ambitious $100 Billion Green Energy Vision
Why Is This Collaboration Surprising?
Gautam Adani and Mukesh Ambani, often seen as rivals in the corporate arena, have surprised the business world with this unexpected collaboration. They have been contenders for the title of Asia’s wealthiest individual for a number of years.
While Ambani’s business empire extends from oil and gas to retail and telecommunications, Adani’s ventures are concentrated on infrastructure, including seaports, airports, and the coal and mining sectors. Their business interests seldom overlap, with the notable exception of the renewable energy sector, where both have pledged to invest billions in the future.
