Adani Power Limited pulls out from Rs 7k crores acquisition of DB Power
Adani Power Limited has given up on its previously announced INR 7,017 crores acquisition of DB Power Limited after the long stop date under the memorandum of understanding signed by the parties dated 18 August 2022 expired on Wednesday, 15 February 2023.
Last month, the parties mutually agreed to extend the long stop date by another one month with the intent to close the deal. However, since then the Adani Group has been facing the heat following accusations of indulging in fraud made by US-based short seller Hindenburg Research.
Last August, Adani Power agreed to acquire DB Power Limited, which is the holding company of an operating 1.2GW thermal power plant in the Janjgir Champa district in Chhattisgarh.
Adani Power pulls out from Rs 7k crores acquisition of DB Power. Photo courtesy of geng huang from Pixabay.
Recently, the Adani Group subsidiary reported a 4% year-over-year increase in its profit before tax for Q3 Fy23 at INR 212 crores, while earning revenue of INR 8,290 crores at a 48% YoY growth. (Know more about Adani Power Q3 FY23 results here)