Adani Group Eyes Stake in Diamond Power to Strengthen Its Infra Capex Plans

Gautam Adani-led Adani Group is eyeing a stake in Ahmedabad-based Diamond Power Infrastructure Ltd (DPIL). The power-to-port conglomerate’s interest in the Ahmedabad-based company is mainly due to its interest in having more control over the vendor ecosystem, the Economic Times reported. The move comes at a time when the Adani Group is aiming to increase capital expenditure.  

The stake sale race has a total of three suitors, including Gautam Adani’s conglomerate. The deal is likely to be sealed in the coming 60 days. 

Adani Group is reportedly likely to follow its present model of buying a stake in the company and permitting its existing management to run the business.“Including the Adani Group, DPIL is in discussion with three suitors for a stake sale as promoters need to bring down their holding to 75% from the present 90%, as per Sebi norms,” ET reported, citing sources.

The power-to-port conglomerate has set a target to increase capex up to 15% to Rs 1.4-1.45 lakh crore in the current fiscal year.  

DPIL promoters’ move to offload their stake from the present 90% to 75% is triggered by the norms of the Securities and Exchange Board of India (Sebi). Earlier in March this year, the promoters had decreased their stake from 94.88% to 90%. The promoters haven’t reportedly disclosed the size of the stake they are aiming to sell presently. 

DPIL is a power infrastructure company with operations spread out across the energy value chain and production capabilities in cables, conductors, transmission towers, and power transmission and distribution. The Ahmedabad-based company also does turnkey manufacturing and installation of transmission line towers and components. The company is listed on the Bombay Stock Exchange (BSE) and has a market capitalisation of around Rs 5,000 crore.