Adani Power fails to buy DB Power assets for Rs 7017 crore
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New Delhi : After the report of American short selling company Hindenburg Research became public, the shares of Adani Group companies are continuously falling. It is reported that since January 24 till last week, the Adani Group has suffered a loss of around $120 billion. Meanwhile, there is news that Adani Power Limited is failing to complete the deal to buy thermal power assets of DB Power for about Rs 7,017 crore.
Thermal power plant is located in Chhattisgarh
Adani Power told the stock market on Wednesday, ‘We would like to inform that the last date under the MoU on 18 August 2022 has passed. Adani Power had earlier told in August 2022 that it has entered into an agreement for the acquisition of DB Power Limited. The company has a thermal power plant of 1200 MW capacity in Chhattisgarh. Adani Power did not respond to queries regarding the current status of the deal till the filing of this report.
The agreement was signed on 31 October
Significantly, the American firm Hindenburg Research has accused the Adani Group of fraud. Opposition parties also raised this issue in Parliament and demanded an inquiry by the Joint Parliamentary Committee. After the Hindenburg report, there was a sharp decline in the shares of Adani Group. The initial MoU for the acquisition of DB Power took place on 31 October 2022. After this, the last date for completing the deal has been extended four times.
Books in good shape: Adani Group
On the other hand, Adani Group assured investors on Wednesday that its balance sheet is in ‘very good’ condition and it is eyeing to maintain the pace of business growth amid the ongoing upheaval in the shares of its companies. The shares of the group companies have registered a steep decline after the report of the American investment research firm Hindenburg accused the Adani Group of unfairly increasing the prices of the shares. Due to this, questions have arisen regarding the protection of the interests of the investors.
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