Gautam Adani: If Gautam Adani has cash then why couldn’t he buy DB Power? – if gautam adani has cash than why it gives up bid to acquire db power
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Adani Group had struck a deal on August 18 last year to buy DB Power for Rs 7,017 crore. This was Adani Group’s second largest merger and acquisition deal in the electricity sector. Under the agreement, the deal was to be completed by October 31, 2022. Adani Group had then claimed that it had enough cash for capital expenditure and the deal would be completed on time. But its deadline was extended several times. Its final closing date was February 15 but Adani Group could not complete the deal.
why did you decide
On January 24, after the report of American short selling firm Hindenburg Research, there was an uproar in the shares of Adani Group. The group’s market cap has declined by more than $ 120 billion. Shares of many companies have reached their lowest level of 52 weeks. The group had to withdraw the FPO of its flagship company Adani Enterprises. Due to heavy selling in shares, the group has changed its strategy. Adani Group was earlier expanding aggressively but now it has hit a brake.
Gautam Adani: The havoc of Hindenburg Research, three companies of Adani Group pledged their shares
To win back the confidence of investors, the group is focusing on improving its financial condition. Adani Group is reducing its debt, redeeming pledged shares and increasing cash. Exiting the DB Power deal is also part of this strategy. Adani Power has a total installed capacity of 13.6 GW. The company has seven thermal plants in seven states. Also there is a 40 MW solar plant. According to the figures of 30 September 2022, the company has a total debt of Rs 36,031 crore.
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