Adani Group Halts Acquisition of Coal-Fired Power Plant Amidst Short Seller Attack Posted on February 17, 2023 News By Akta Yadav 116 Views Coal-Fired Power Plant:- Adani Group, led by Gautam Adani, has decided to halt the $847 million acquisition of a coal-fired power plant in India. This decision indicates that the billionaire's business empire is reducing its spending following a short seller attack. The Indian conglomerate, which is the largest private thermal power producer in India, has been affected by a stock market decline triggered by the New York-based short seller, Hindenburg Research. Last month, Hindenburg Research released a report accusing the group of stock manipulation and fraud. Adani has strongly denied the allegations, stating that the group's debt is manageable. However, the yields on its bonds continue to rise, and the company's listed shares have plummeted. Flagship Adani Enterprises' shares have fallen to a low of Rs1,017 from more than Rs4,000 in December. Coal-Fired Power Plant In response to allegations of stock manipulation and fraud by New York-based short seller Hindenburg Research, the Adani Group has been hit hard by a stock market rout. As a result, the group's electricity unit, Adani Power, is temporarily putting a stop to further capital expansion. Vibhuti Garg, the south Asia director of the Institute for Energy Economics and Financial Analysis (IEEFA), stated that the company is avoiding building up coal assets as well. This decision marks a change in strategy for Gautam Adani, the Indian tycoon who built up his conglomerate during a debt-fuelled expansion, adding revenues through the acquisition and construction of projects ranging from solar power to airports. Adani is widely regarded as an ally of India's prime minister, Narendra Modi, and is considered the architect of logistics networks and power generation that formed the backbone of India's growing economy. Adani Power had agreed in August to purchase DB Power and its parent company Diligent Power Private, which is the owner and operator of a great coal-fired power plant located in Chhattisgarh, India. Diligent's owners also own Bhaskar Group, a newspaper company. Bhaskar Group, a newspaper business. The deal, worth the sum of Rs70 billion ($847 million) has been accepted by the competition authority of India in September and the parties extended the deadline four times before Wednesday, which was the last day to finish. But, Adani Power announced that the parties will not extend the deadline of the deal in a market filing in response to the expiration of the long-stop date in the memorandum that was signed on August 18, 2022. In earnings announcements for the quarter this week, a number of Adani portfolio companies disclosed they were reducing their capital expenditures in the financial year that begins in April. Chief financial officer of Adani Group Jugeshinder Singh, said that the company will not commit to any new projects until the volatility period is over. He assured analysts that all current projects will be completed on time and suggested that they bring investors and analysts to review the progress on an airport that is being built near Mumbai the capital of India's financial sector. In conclusion, the decision by Adani Group to halt the acquisition of the coal-fired power plant in India indicates a slowdown in spending, likely due to the short seller attack. Adani Group is now scaling back capital expenditure, and any new investment would be under scrutiny. The move to avoid building coal assets marks a change in strategy for the company. Despite this, the current projects are expected to be completed on schedule. Coal-Fired Power Plant For more updates keep visiting our website www.topstoriesworld.com where we provide unbiased, true and top stories of the world.