Adani eyes DPIL stake to tighten vendor control, boost infra capex plans

Adani Group is in talks to acquire a stake in Diamond Power Infra Ltd as part of a strategy to tighten vendor control and support its ₹1.45 trillion capex push; deal likely in 60 days

Adani Group has emerged as the leading contender to acquire a stake in Ahmedabad-based Diamond Power Infrastructure Ltd, according to a report by The Economic Times. Two other parties are also reportedly in discussions with the company’s promoters.

This aligns with the Gautam Adani-led conglomerate’s strategy to gain tighter control over its vendor ecosystem as it ramps up capital expenditure over the coming years. 

Diamond Power Infrastructure Ltd (DPIL) operates across the power infrastructure value chain, with capabilities in cables, conductors, transmission towers, and power transmission and distribution. The company also undertakes turnkey manufacturing and installation of transmission line towers and components. DPIL was acquired in 2022 by a consortium comprising GSEC Ltd and Rakesh Shah through the National Company Law Tribunal (NCLT) route. It is currently listed on the BSE and has a market capitalisation of around ₹5,000 crore.

 

 

DPIL promoters to dilute stake to meet regulatory norms

According to Securities and Exchange Board of India (Sebi) regulations, listed companies must limit promoter holdings to 75 per cent. DPIL’s promoters currently hold 90 per cent, a reduction from 94.88 per cent as of March 2024. 

“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 per cent from the present 90 per cent, as per Sebi norms,” a source said, as quoted by the report. A deal is expected within the next 60 days.   

 

Existing management may stay in place

Should Adani Group secure the stake, it is likely to retain the current management — a model it previously adopted in other acquisitions. This includes PSP Projects Ltd, where Adani picked up a 30.07 per cent stake for ₹685 crore in 2023 while keeping the existing team in charge. 

In a similar strategic move in October last year, Adani’s Renew Exim DMCC acquired a majority interest in ITD Cementation India, an EPC and civil infrastructure firm with operations both in India and abroad, The Economic Times reported. 

 

Adani Group's capex push and growth plans

The stake acquisition in DPIL is part of Adani Group’s broader capital expenditure push. The group is planning to increase its capex for the current financial year by up to 15 per cent, reaching ₹1.4 trillion to 1.45 trillion, compared to ₹1.26 trillion in FY25.

For DPIL, the capital infusion from the stake sale is expected to support its expansion drive. The report quoted a source as saying, “The company is targeting revenues of ₹10,000 crore over the next three years.” In FY25, DPIL posted a revenue of ₹343 crore.

 

Adani pledges ₹50,000 crore for NE development

At the recently concluded Rising Northeast Investors Summit, Adani Group Chairman Gautam Adani announced a fresh ₹50,000 crore investment commitment for the region over the next 10 years. This comes just three months after the group pledged a similar amount for Assam.   

  “Three months ago in Assam, we pledged an investment of ₹50,000 crore. Today, once again humbled and inspired by your (PM Modi) leadership, I announce that Adani Group will invest an additional ₹50,000 crore across the Northeast for the next 10 years,” Adani said at the event. 

The proposed investment will support a wide spectrum of sectors, including green energy, hydroelectric projects, power transmission, roads and highways, smart meters, digital infrastructure, and logistics. In addition, a significant portion will be directed towards vocational training and skill-building initiatives. 

Calling the Northeast “a story rooted in diversity, resilience, and untapped potential”, Adani noted the region’s increasing role in India’s national vision. He said it now represents India’s cultural pride, economic promise, and strategic importance.