MUMBAI: Adani Group is the frontrunner for a stake in Ahmedabad-based Diamond Power Infrastructure Ltd (DPIL), said people close to the development. Two other contenders are also in the race, the people said.
The Gautam Adani-led conglomerate’s interest in DPIL stems from its aim to gain better control of the vendor ecosystem, as it moves to significantly enhance capex in the coming few years.
DPIL is a vertically integrated power infrastructure company with a presence across cables, conductors, transmission towers, and power transmission and distribution segments. The company is also engaged in manufacturing and installation of transmission line towers and parts on a turnkey basis.
Existing Mgmt may Still Run Ops
“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,” one of the persons cited above said, adding that a deal is likely in the next 60 days. Promoters of BSE-listed DPIL currently own 90% of the company, declining from 94.88% in March 2024.
DPIL has a market capitalisation of around Rs 5,000 crore. The people did not disclose the size of stake the promoters are looking to sell. Parties competing with Adani for the DPIL stake could not be ascertained. DPIL was acquired by a consortium of GSEC Ltd and Rakesh Shah through a National Company Law Tribunal process in 2022.
The people cited above said Adani Group is likely to follow the current model of acquiring a stake in the company and allowing the existing management to run operations. This would mirror its strategy deployed with construction company PSP Projects Ltd, wherein it had acquired a 30.07% stake for Rs 685 crore last year.
Also, last October, Adani Group arm Renew Exim DMCC took a majority stake in ITD Cementation India. ITD Cementation is an engineering and construction company with civil, infrastructure, and engineering, procurement and construction (EPC) businesses in India and overseas. Adani Group plans to boost capex for the current fiscal year by up to 15% to Rs 1.4-1.45 lakh crore. Capex in FY25 hit an all-time high of Rs 126,000 crore.
EXPANSION PLANS
DPIL will use proceeds from the stake sale to further expand operations with the company targeting revenues of Rs 10,000 crore in the next three years, the person said. The company ended FY25 with Rs 343 crore revenue.
Adani Group and DPIL did not respond to email queries.
The Gautam Adani-led conglomerate’s interest in DPIL stems from its aim to gain better control of the vendor ecosystem, as it moves to significantly enhance capex in the coming few years.
DPIL is a vertically integrated power infrastructure company with a presence across cables, conductors, transmission towers, and power transmission and distribution segments. The company is also engaged in manufacturing and installation of transmission line towers and parts on a turnkey basis.
Existing Mgmt may Still Run Ops
“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,” one of the persons cited above said, adding that a deal is likely in the next 60 days. Promoters of BSE-listed DPIL currently own 90% of the company, declining from 94.88% in March 2024.
DPIL has a market capitalisation of around Rs 5,000 crore. The people did not disclose the size of stake the promoters are looking to sell. Parties competing with Adani for the DPIL stake could not be ascertained. DPIL was acquired by a consortium of GSEC Ltd and Rakesh Shah through a National Company Law Tribunal process in 2022.
The people cited above said Adani Group is likely to follow the current model of acquiring a stake in the company and allowing the existing management to run operations. This would mirror its strategy deployed with construction company PSP Projects Ltd, wherein it had acquired a 30.07% stake for Rs 685 crore last year.
Also, last October, Adani Group arm Renew Exim DMCC took a majority stake in ITD Cementation India. ITD Cementation is an engineering and construction company with civil, infrastructure, and engineering, procurement and construction (EPC) businesses in India and overseas. Adani Group plans to boost capex for the current fiscal year by up to 15% to Rs 1.4-1.45 lakh crore. Capex in FY25 hit an all-time high of Rs 126,000 crore.
EXPANSION PLANS
DPIL will use proceeds from the stake sale to further expand operations with the company targeting revenues of Rs 10,000 crore in the next three years, the person said. The company ended FY25 with Rs 343 crore revenue.
Adani Group and DPIL did not respond to email queries.
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