PSP Projects shares fell over 9 percent on November 21 following reports that US prosecutors have charged billionaire Gautam Adani in an alleged Rs 2,100 crore bribery scheme to secure solar energy contracts in India.
The decline in PSP Projects' stock price came a day after the company announced that Adani Infrastructure, a unit of the Adani Group, would acquire a 30.07 percent stake from one of its founders for Rs 685 crore.
"Upon completion of the transaction, the board of the company shall be reconstituted to include the directors nominated by the Acquirer (Adani Infrastructure)," PSP Projects said in a regulatory filing.
The shares of PSP Projects hit an intraday low of Rs 609 on the NSE, marking a 9 percent decline. By around 10 am, the stock was trading at Rs 620, down 7.74 percent.
On November 19, PSP Projects had closed 3.53 per cent higher at Rs 666.6 per share on the BSE. The company's market capitalisation has since dropped to Rs 2,457.79 crore from Rs 2,666 crore.
PSP Projects share price jumps 10% on news Adani may buy majority stake, launch open offer
The Adani Group has intensified its acquisition spree in recent months, signaling aggressive expansion.
Recent deals include a Rs 3,204 crore acquisition of a 46.64 percent stake in ITD Cementation India through its unit Renew Exim, and an Rs 8,100 crore purchase of CK Birla Group’s Orient Cement. Both transactions involved mandatory open offers, giving Adani controlling stakes in these companies.
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