Reliance bought 26% stake in Adani's Company MEL and in return...

For the Next 20 years, Reliance will use 500 MW electricity Generated in the Power Plant, Reliance purchased 50 million shares of MEL, a subsidiary of Adani 

India's two great tycoons, Reliance Industries Chairman Mukesh Ambani or Adani Group Chairman Gautam Adani, have done business dealings with each other for the first time. Recently an agreement has also been done between the two Great Leaders on 27th March at 7 pm. 

Adani Power stated in BSE Filing 

Adani power stated "In this connection, APL, MEL, and RIL have signed an investment agreement on 27th March 2024 at 7:00 pm. Closing of the transaction is subject to customary closing conditions including receipt of requisite approvals," 

Reliance Industries will buy 26% stake in a Thermal power project in Madhya Pradesh being built by Adani Power. A wholly owned Subsidiary Company of Adani Power, MEL Mahan Energen Limited is building a power plant in Madhya Pradesh, in which Reliance's owner Mukesh Ambani is buying 50 Million equity shares, the price of each share is Rs 10, which means RIL is buying equty shares worth Rs 50 crore.

An agreement has been signed on this, according to which, Reliance Company will take 500 MW of the electricity generated in the Thermal power plant for 20 years — Both the companies mentioned in their respective exchange filings.

Adani states in regulatory filing regarding its dealing with Ambani "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 stated in its Filing — regarding deal between the two tycoons, "Mahan Energen Ltd (MEL), wholly owned subsidiary of Adani Power Ltd (APL), has entered into a 20-year long-term power purchase agreement (PPA) for 500 MW with Reliance Industries Ltd (RIL), under the captive user policy as defined under the Electricity Rules, 2005,"

 

Let us tell you that this power plant built by Adani Power is a mega power plant which will have the capacity to produce 2800 MW of electricity. It is a large scale Company involved in Power generation and supply of power, established in 2005, October 19. Turnover of Mahan Energen Limited is increasing at a fast pace from 692.03 crores to 2730 crores in just to years. Also, even in hard economic times like Covid 19, mail turnover did not decrease, rather it increased further.

The Filing stated on the purchase of shares by Reliance industries 

The Filing said, "In order to avail the benefit of this policy, RIL has to hold a 26 per cent ownership stake in the captive unit in proportion to the total capacity of the power plant. It will accordingly invest in 5 crore equity shares of MEL, aggregating to Rs 50 crore for the proportionate ownership stake,".

"This development brings between two corporates an exclusive arrangement for 500 MW of power purchase by Reliance Industries on a long-term basis. The investment is subject to customary conditions precedent including receipt of requisite approvals by MEL and is expected to be completed within 2 weeks of receipt of completion of conditions precedent and receipt of such approvals by MEL," it added.

Are Gautam Adani and Mukesh Ambani Competitors

There are so many times when Ambani and Adani been shown as rivals to each other in the media, but till now there is no such sector where both Ambani and Adani are rivals to each other.

Mukesh Ambani and Gautam Adani's house is on Mumbai's Giant Road, and because of the presence of the world's 2 biggest billionaires on this road, people named the the road as Billionaire Row. According to Hurun report, Ambani have a net worth of 9.72 lac crore ( 113.8 billon USD ), the 11th Richest man in the world, Gautam Adani's wealth is Rs 8 lakh Crore (USD 97.2 Billion) and he is the seventeenth richest person in the world.

Besides Business Dealing : Bold Family Relations 

Along with this, the relations between the families of both Gujarati Business Tycoons are very well, Gautma Adani also attended the pre-wedding ceremony of Mukesh Ambani's younger son Anant Ambani in Jamnagar.

Mukesh Ambani who is building his empire in business ranging from Telecom to Clothing, on the other hand Gautam Adani is known outside the world for his Infrastructure and Mining work, — said that the mission of our company — Adani Power will become the world's largest renewable energy producer by 2030, but currently both the companies have announced to invest Multi-Billion dollars in Clean Energy.

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