Adani Power announces lapse of long stop date to complete DB Power acquisition

DB Power operates a running 2x600 MW thermal power plant in Chhattisgarh (Representative image)

Adani Power on February 15 announced the lapse of the long stop date to complete the acquisition of DP Power. The deal to acquire the company was announced in August last year.

"We wish to inform that the long stop date under the memorandum of understanding dated August 18, 2022, has expired," the power sector arm of the Adani group said in a regulatory filing.

The acquisition of DB Power, which owns and operates a running 2x600 MW thermal power plant in Chhattisgarh's Janjgir Champa district, was expected to expand Adani Power's operations in the central Indian state.

Adani Power had, on August 19, stated that it would acquire the company for an amount of Rs 7,017 crore. The deal was to be completed by October 31, but the deadline was extended by a month.

Subsequently, Adani Power pushed the deadline to December 31, followed by another extension till January 15.

By announcing the expiry of the long stop date, Adani Power has virtually called off the acquisition deal.

This comes at a time when Adani Power, along with other listed entities of Adani group, has cumulatively shed over Rs 10 lakh crore since January 24, when US-based short seller Hindenburg Research released a report alleging stocks manipulation and accounting fraud by the Gautam Adani-led conglomerate.

The power company also reported dismal earnings for October-December 2022 quarter. Its net profit declined 96 percent to Rs 8.77 crore, mainly on the back of higher expenses. In the year-ago period, the profit was Rs 218.49 crore.