New Delhi, Sept. 8 -- Shares of Adani Power Ltd rose 5% to Rs.640 apiece on Monday after the company announced a joint venture (JV) with Bhutan's state-owned utility Druk Green Power Corp. to build a 570 MW hydroelectric project at Wangchhu in Bhutan. Adani will hold a 49% stake in the JV, which will see an initial investment of Rs.6,000 crore. Since its holding is below 50%, the JV's financials will not be consolidated line by line but would reflect in Adani's net profit as share in JV.

The project's initial plant capacity may appear modest compared with Adani's 18.1 GW thermal capacity, the largest among private players in India. But the JV is significant as Adani's first hydro power venture, and aligned with its goal of setting up 5,0...