Gautam Adani may bid for Anil Ambani’s cash-strapped coal plants

12 Jul 2023 , 10:31 AM

According to sources, billionaire Gautam Adani is considering a bid for the coal-fired power plants owned by beleaguered Indian tycoon Anil Ambani that are currently being auctioned by an Indian bankruptcy court.

Adani recently raised $2.8 billion in capital. Reportedly, Adani may face severe competition for Vidarbha Industries Power Ltd., which currently operates 600-megawatt generation facilities in central India.

Further, Ambani’s Reliance Power is also considering making an offer so that it could get back control of the company, cited the sources.

The two companies are in the negotiations and they may decide to not proceed with formal offers.

If Adani wins the plants, they will contribute to his growing portfolio of coal power projects as the conglomerate tries to recover from a devastating short-seller attack by Hindenburg Research in January. The fiasco has made Adani lose more than $150 billion from the group’s market value at some point.

The sale of Vidarbha Industries to another company would also devalue Ambani, a former billionaire who has battled creditors for years and fought a bitter succession battle with Mukesh, his elder brother, and Asia’s richest man.

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