Adani Power cancels plan to acquire DB Power

17 Feb 2023 , 08:15 AM

Adani Power has cancelled its plan to purchase DB Power for Rs 7,017 crore after failing to meet the most recent deadline, which passed on Wednesday.

Adani Power informed the bourses on Wednesday that the ‘extended stop date’ under the memorandum of understanding ‘had expired.’ Yet, the business gave no explanation for terminating the agreement. Up until the time of going to press on Thursday, the corporation had not responded to an email inquiry in this respect.

The change occurs at a time when US-based short seller Hindenburg Research’s charges of financial malfeasance have placed the Adani Group in the centre of a storm.

This was the group’s second setback after it was forced to abandon the follow-on public offering (FPO) of its flagship company, Adani Enterprises, as a result of a precipitous decline in share price. The FPO has all of its subscribers.

Concerns over the Adani Group’s capacity to raise financing in the wake of the Hindenburg report have also been brought to light by the collapse of the DB Power transaction.

In order to purchase the Dainik Bhaskar Group’s power unit, Adani Power had inked a memorandum of understanding (MoU) with it in August of last year. The MoU was set to expire on October 31 but was extended by the two parties four times before it did so on February 15.

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