Mahan Energen Ltd., an arm of Adani Power Ltd., has merged the company's wholly-owned subsidiary Stratatech Mineral Resources Pvt. with itself, according to an exchange filing on Wednesday.
The amalgamation has come into effect as all conditions mentioned in the merger scheme have been met, the filing said. The merger had received approval from the National Company Law Tribunal's Ahmedabad bench on Nov. 7.
"There are no adverse observation in respect of the petitioner companies as well as in respect of the scheme...," the NCLT order had stated. "After analysing the scheme in detail, this Tribunal is of the considered view that the Scheme as contemplated between the companies seems to be prima facie beneficial to the companies and will not be in any way detrimental to the interest of the shareholders of the companies," it added.
In June this year, Mahan Energen had agreed to merge the coal miner Stratatech Mineral with itself as a means to improve its fuel security. Stratatech Mineral has been allocated the Dhirauli Coal Mine, which has a capacity to produce 6.5 million tonne per annum coal.
As a result of the amalgamation, Mahan Energen will now be able to operate the Madhya Pradesh-based coal mine as a captive coal mine and provide the company with an alternative source of supply to supplement its existing coal sourcing contracts. The move will help in improving the cost efficiency, the company had stated at that time.
Shares of Adani Power closed 1.24% lower at Rs 537.5 apiece on the BSE, compared to a 0.14% advance in the benchmark Sensex.
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