Adani Eyes DPIL Stake to Tighten Vendor Control
The Adani Group is the front-runner to purchase a share in Diamond Power Infrastructure Ltd., a company situated in Ahmedabad.
This is in line with the conglomerate led by Gautam Adani's plan to increase control over its vendor ecosystem as it increases capital spending in the upcoming years.
With expertise in cables, conductors, transmission towers, and power transmission and distribution, Diamond Power Infrastructure Ltd. (DPIL) operates throughout the power infrastructure value chain.
Additionally, the business manufactures and installs transmission line towers and their components on a turnkey basis. In 2022, a group consisting of Rakesh Shah and GSEC Ltd purchased DPIL via the National Company Law Tribunal (NCLT).
With a market valuation of about Rs.5,000 crore, it is presently listed on the BSE.
The Securities and Exchange Board of India (Sebi) mandates that listed businesses restrict the percentage of promoter shareholding to 75 percent.
The promoters of DPIL now own 90 percent of the company, down from 94.88 percent in March 2024.
Adani Group is expected to keep the current management if it is successful in acquiring the stake; this is a strategy it has used in the past.
This includes PSP Projects Ltd., where Adani retained the current management team while purchasing a 30.07 percent share for Rs.685 crore in 2023.
The Adani Group's larger capital investment drive includes the purchase of a share in DPIL.
The group intends to raise its capital expenditures for the current fiscal year by as much as 15 percent, from Rs.1.26 trillion in FY25 to Rs.1.4 trillion to 1.45 trillion.
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Adani Group Chairman Gautam Adani made a new investment promise of Rs.50,000 crore for the region over the next ten years at the just-concluded Rising Northeast Investors Summit. Only three months have passed since the organization promised a comparable sum for Assam.