Adani Power Ltd's Rs 7,017-crore deal to buy thermal power assets of DB Power has fallen after the initial pact expired.
"We wish to inform that the long stop date under the memorandum of understanding dated August 18, 2022, has expired," Adani Power said in a regulatory filing on Wednesday, reports PTI.
Earlier in August 2022, Adani Power had informed the bourses that it has agreed to acquire DB Power Ltd (DB Power), which owns and operates a running 2x600 MW thermal power plant at district Janjgir Champa in Chhattisgarh.
Queries regarding the status of the deal sent to Adani Power did not elicit any response.
This assumes significance in view of allegations of fraud against Adani group by the US-based short-seller Hindenburg Research. This issue rocked Parliament also earlier this month and opposition had demanded Joint Parliamentary Committee as well as a Supreme Court monitored probe into the issue.
The initial term of the MOU (memorandum of understanding) was October 31, 2022. Later the deadline for the transaction got four extensions till November 30, 2022, December 31, 2022, January 15, 2023 and February 15, 2023.
DB Power is engaged in the business of establishing, operating and maintaining a thermal power generating station in Chhattisgarh.
DB Power has long and medium-term power purchase agreements for 923.5 MW of its capacity, backed by fuel supply agreements with Coal India Ltd, and has been operating its facilities profitably.
'Very healthy balance sheet'
Billionaire Gautam Adani's embattled conglomerate said its balance sheet is "very healthy" and is laser focused on continuing business momentum, as it looked to reassure investors to keep faith in the conglomerate despite a share rout triggered by a damning report by a US short-seller.
Group CFO Jugeshinder (Robbie) Singh in an earnings call said the group is confident of its internal controls, compliance and corporate governance, reports PTI.
Separately, it released a compendium of group companies to highlight that it has adequate cash reserves and has ability to refinance debt.
Suit seeks CBI probe
The Supreme Court on Wednesday agreed to hear on Friday a fresh plea of a Congress leader seeking investigation by the CBI and other regulatory agencies against the Adani group of companies in the light of the allegations made by the US-based Hindenburg Research.
The PIL, among other things, questioned the role of Life Insurance Corporation of India (LIC) and State Bank of India (SBI) in investing huge public money in the entity “without due diligence”.
