Adani Withdraws Bid for State-Owned PTC Stake After DB Power Move: Report

Adani Withdraws Bid for State-Owned PTC Stake After DB Power Move: Report

Adani Power’s Rs 7,017 crore plan to acquire coal-based electricity generating units of DB Power Limited has fallen through, according to recent reports. The news comes as Adani Group Chairman Gautam Adani has decided not to bid for a stake in Power Trading Corporation, a state-backed energy trading firm.

In the aftermath of a damning report by US short seller Hindenburg Research, Adani Group is seeking to preserve cash. The group is reportedly looking to sell a 16% stake in PTC India, which could be valued at Rs 415 crore, as state-owned entities NTPC Ltd, NHPC Ltd, Power Grid Corp of India Ltd, and Power Finance Corp Ltd consider selling their stakes.

Hindenburg Research’s report alleged accounting fraud and stock manipulation, which Adani Group vehemently denied. However, the report led to a drastic drop in the group companies’ market value, with half of their worth wiped out.

Adani Power’s failed acquisition of DB Power would have expanded its operations in the thermal power sector in the state. DB Power currently operates a 2×600 MW coal-fired power plant in Janjgir Champa district in Chhattisgarh, with long and medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Ltd. The company recorded a turnover of Rs 3,488 crore in the financial year 2022.

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