Prime Highlights:
Adani Group is leading the race to acquire a significant stake in Diamond Power Infrastructure Ltd (DPIL), ahead of two other contenders.
The acquisition aligns with Adani’s strategy to strengthen control over its power infrastructure supply chain amid planned capital expenditures.
Key Facts:
DPIL is a vertically integrated power infrastructure company involved in cables, conductors, transmission towers, and power distribution.
The sponsors presently have 90% ownership in DPIL and will have to reduce to 75% levels to meet the requirements of the regulations.
Key Background :
Adani Group has become the leading contender for acquiring a stake in Diamond Power Infrastructure Ltd (DPIL), a prominent player in India’s power infrastructure space. This acquisition is a part of the overall strategy of Adani to gain stronger control of its vendor ecosystem as it looks to incur massive capital expenditure in the future years.
DPIL is vertically integrated power infrastructure player with stakeholder interest in cable, conductor, transmission tower and manufacturing and supply of power transmission and distribution. DPIL is also having turnkey transmission line tower and allied part projects. DPIL, possessing such dynamic competence, is a good candidate for acquisition by Adani Group since Adani Group is in need to reinforce and strengthen its position in power business.
The promoters currently own 90% interest, but SEBI regulations demand this fall to 75%. The sale window for stakes has therefore opened due to this, and the Adani Group and two other anonymous bidders are in the fray. While details of quantum of stakes available for sale are not known, the transaction is expected to go through within the next couple of months.
DPIL was acquired in 2022 by GSEC Ltd’s consortium and Rakesh Shah in an NCLT transaction. The scale of DPIL has grown many times over to a market capitalisation of around ₹5,000 crore. Adani Group’s takeover bid makes sense in its intention to ride on DPIL’s strength of integration in an attempt to improve efficiency and supply chain management in the space of power infrastructure.
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