Adani Power shares surge 5% after JV for 570 MW hydropower project in Bhutan

Adani Power Ltd (APL) shares surged 5% to the day’s high of Rs 640.55 on BSE on Monday, September 8, after the company announced the signing of a shareholders’ agreement (SHA) with Bhutan’s state-owned utility Druk Green Power Corporation Ltd (DGPC).

The agreement, signed on September 5, 2025, marks a significant step toward establishing a 570 MW hydroelectric project at Wangchhu in Bhutan.

According to the company’s filing, the two parties will jointly incorporate a public company in Bhutan to execute the project. The new entity will have a 49:51 shareholding structure, with APL holding 49% and DGPC retaining the majority 51%.

The strategic partnership highlights Adani Power’s push to expand its presence in the hydropower sector beyond Indian borders.

Under the terms of the SHA, APL and DGPC will each have the right to appoint three directors to the board of the project company. Both entities have also agreed to make capital contributions from time to time in the agreed proportion, in addition to the initial investment.

Initially, the project company will issue 4.9 million shares to APL and 5.1 million shares to DGPC, with each share priced at BTN 100 (Bhutanese Ngultrum). The agreement also includes standard clauses covering pre-emptive rights, restrictions on share transfers, events of default, and non-compete obligations.

APL confirmed it does not currently hold any equity stake in DGPC. However, the creation of the new project entity under the formal SHA paves the way for a long-term strategic partnership between the two utilities.

Shares of Adani Power closed flat at Rs 609.80 on BSE on Friday.

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