New Delhi: The report of American research firm Hindenburg Research has shaken the Adani Group badly. Due to this, the market cap of the Gautam Adani-led group has declined by $ 135 billion. Also, the group has now started aggressively shelving its expansion plans. The group’s emphasis is now on saving cash. Earlier it did not pursue the deal with DB Power and has also pulled out of PTC India Ltd. Adani Group was preparing to bid for this government electricity trader company. According to a Bloomberg report, the Adani Group has now decided not to bid for it. Adani Group has halved its revenue growth target. Also, to win back the confidence of investors, fresh capital expenditure has been put on hold for the time being.
Four government companies NTPC (NTPC), NHPC (NHPC), Power Grid and Power Finance have stake in PTC India Limited. These companies are in the process of selling their four per cent stake each in PTC India. According to the company’s latest share price, the 16 per cent stake is worth $52 million. Its shares have gained 11 per cent this year and its total market cap is around $322 million. Earlier, Adani Power had given up on the deal to buy DB Power. When the deal was announced in 2022, it was Adani Group’s second largest merger and acquisition deal in the electricity sector. But the Adani Group, battling the aftershocks of Hindenburg Research, failed to complete the deal.
Gautam Adani: Adani Group has lost $ 132 billion, yet this government bank is ready to give more loans
what would be the use
Had PTC India come into the hands of Adani, it would have strengthened his hold in the country’s energy value chain. Adani Group is in coal mining to trading business, transmission and distribution services. Adani Group is already in a very strong position in the energy sector of the country. PTC India was earlier known as Power Trading Corporation of India. It was established in the year 1999. The four government companies have appointed an advisor for stake sale in the company.
