Adani Group ahead of two others in race for Diamond Power stake
The Gautam Adani-led conglomerate's interest in DPIL stems from its aim to gain better control of the vendor ecosystem, as it moves to significantly enhance capex in the coming few years.
DPIL is a vertically integrated power infrastructure company with a presence across cables, conductors, transmission towers, and power transmission and distribution segments. The company is also engaged in manufacturing and installation of transmission line towers and parts on a turnkey basis.
Existing Mgmt may Still Run Ops
'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% from the present 90%, as per Sebi norms,' one of the persons cited above said, adding that a deal is likely in the next 60 days. Promoters of BSE-listed DPIL currently own 90% of the company, declining from 94.88% in March 2024.
DPIL has a market capitalisation of around Rs 5,000 crore. The people did not disclose the size of stake the promoters are looking to sell. Parties competing with Adani for the DPIL stake could not be ascertained. DPIL was acquired by a consortium of GSEC Ltd and Rakesh Shah through a National Company Law Tribunal process in 2022.
The people cited above said Adani Group is likely to follow the current model of acquiring a stake in the company and allowing the existing management to run operations. This would mirror its strategy deployed with construction company PSP Projects Ltd, wherein it had acquired a 30.07% stake for Rs 685 crore last year.Also, last October, Adani Group arm Renew Exim DMCC took a majority stake in ITD Cementation India. ITD Cementation is an engineering and construction company with civil, infrastructure, and engineering, procurement and construction (EPC) businesses in India and overseas. Adani Group plans to boost capex for the current fiscal year by up to 15% to Rs 1.4-1.45 lakh crore. Capex in FY25 hit an all-time high of Rs 126,000 crore.
EXPANSION PLANS
DPIL will use proceeds from the stake sale to further expand operations with the company targeting revenues of Rs 10,000 crore in the next three years, the person said. The company ended FY25 with Rs 343 crore revenue.
Adani Group and DPIL did not respond to email queries.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
an hour ago
- CNBC
Speaker Johnson hopes Musk and Trump can 'reconcile' their differences after public fallout
House Speaker Mike Johnson said Sunday that he hopes President Donald Trump and Elon Musk can "reconcile" after their public fallout last week. "There's a lot of emotion involved in it, but it's in the interest of the country for everybody to work together," the Louisiana Republican said on ABC News' "This Week." Johnson said that he has not spoken with Musk about the GOP-led "big, beautiful bill" since last Monday. Musk last week went on a rant against the multitrillion-dollar spending package that narrowly passed the House, calling it a "disgusting abomination" that would lead to exploding federal deficits. On Sunday, Johnson brushed aside the Tesla's CEO's criticisms of the bill. "I didn't go out to craft a piece of legislation to please the richest man in the world, what we're trying to do is help hardworking Americans," he said. The spending bill is now with the Senate. Musk's vocal opposition to the legislation was in part what triggered the public clash between Trump and the billionaire SpaceX founder, CNBC previously reported. The two men have not spoken since their feud, White House press secretary Karoline Leavitt said Sunday on "Fox Sunday Morning Futures," adding that she doesn't think Trump "intends to." Trump also told NBC News' Kristen Welker on Saturday that he was not interested in repairing his relationship with Musk following their spat, signaling that their rift could be irreversible. Musk was the largest donor of the 2024 presidential campaign, and his super PAC spent roughly $200 million to propel Trump to the White House. In the midst of Musk's criticisms against the bill, he threatened to "fire all politicians who betrayed the American people." But Trump warned Saturday that Musk would pay "very serious consequences" if he funds Democratic candidates challenging Republicans who support the bill. Johnson, a loyal Trump ally, echoed the president's remarks, saying it would be a "big mistake" if Musk were to back Democratic candidates.
Miami Herald
2 hours ago
- Miami Herald
Something Bold Is Coming From Alfa Romeo: New Stelvio Coming?
Alfa Romeo, like Maserati, isn't in a good place right now. The Stellantis-led marque is in dire need of a turnaround plan with the world's fifth-largest automaker confirming that a major strategy review is in the pipeline for the Italian marques, spearheaded by a new CEO. Wasting no time putting that plan into action, Alfa Romeo has announced a big reveal is set to take place on June 10, 2025, at 4:30 PM CEST (10:30 AM EDT) with the following post shared on it social media accounts: "A new chapter is about to begin. Bold, unexpected, unmistakably Alfa Romeo." So, what is the premium Italian brand cooking? It's no secret that Alfa Romeo is working on the next-generation Stelvio, its best-selling model. Despite being hit by an issue concerning the switch to a hybrid powertrain, the timing's just right. The eight-year-old Stelvio is aging, and the automaker needs to entice fans with a new model. The next-gen Stelvio will use Stellantis' STLA Large platform, which underpins the unpopular Dodge Charger Daytona EV – an architecture flexible enough to cater to both pure EV and hybrid setups. The switch from the previous all-electric powertrain plan to hybrid isn't as easy as flicking a switch, though. That said, we don't expect any powertrain details if this is indeed the new Stelvio, only a look at its new design, which was recently shared via the following patent images. But if it's not a new model, then what else could the teaser be referring to? As you can see in the single teaser provided, the imagery shows the Alfa Romeo badge with a glowing red equilateral triangle. Alfanatics will recognize the triangle from Autodelta, Alfa Romeo's historic racing division. Could Alfa Romeo be about to announce a return to motorsport? Or could it be ready to launch a performance model that harkens to classic Alfas that Autodelta worked on. Whatever Alfa Romeo's planning, we only have a couple of days to find out. So stay tuned. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
CNBC
5 hours ago
- CNBC
China's EV race to the bottom leaves a few possible winners
China's electric car price war shows little sign of letting up, putting more pressure on companies to survive. Tesla 's China sales fell by 15% in May from a year ago, China Passenger Car Association data showed. BYD , in contrast, reported a 14% year-on-year sales increase as it held onto first place in the market by volume, but even it had to announce sharp discounts as sales growth slowed from April's pace. "We expect additional price competition in the coming weeks as BYD is still lagging behind its sales target," said a team of analyst led by CLSA analyst Xiao Feng in a report Wednesday. While the analysts still have a high conviction, with an outperform rating on BYD's Hong Kong-listed shares, they see Geely as the 'best positioned" for investors as it is striking the optimal balance with its internal business structure and competing on vehicle price. CLSA has a price target of 483 Hong Kong dollars ($61.55) on BYD, and a 23 HKD target on Geely, also listed in Hong Kong. That's upside of nearly 20%, and 28%, respectively, from Friday's close. Geely is a large conglomerate with electric vehicle brands Galaxy, Zeekr and Lynk and Co., which share some of the same tech and manufacturing systems. "Geely's Galaxy NEV brand has successfully targeted BYD's popular models with better specs and lower prices," Macquarie analysts said in a report Thursday, citing a call with an auto dealer who manages dealerships for BYD, Geely and Xpeng in the relatively affluent Suzhou region near Shanghai. "The expert believes Geely's success will continue, as it is still ramping up new models to compete with BYD's entire model line-up," the report said. The Macquarie analysts have a price target of 22 HKD on Geely and rate the stock outperform. But they like U.S.-listed electric car startup Xpeng even more, with a $24 price target. Xpeng is likely to benefit from near-term market share gains given its advanced driver assist system and upcoming car models, the analysts said. The latest delivery data showed Xpeng delivered more than 30,000 cars in May for a seventh straight month, a rare feat among its immediate peers. The company last month also launched a new car under its lower-priced Mona brand. Among publicly listed new energy vehicle companies, a category that includes battery-only and hybrid-powered cars, Leapmotor and Li Auto have proven relatively stable, each with deliveries of more than 40,000 vehicles in May. Both companies have Hong Kong listings, while Li Auto also trades in New York. "Through a continuously expanding product matrix and cost-effective models, Leapmotor has achieved a stable market share in the Chinese mass EV market and has strong growth potential," the CLSA analysts said. They have a price target of 72 HKD, or more than 30% upside from Friday's close. Leapmotor reported a net loss in the first quarter, however, compared with profit in the fourth quarter. But Li Auto maintained profitability in the first quarter, according to results released on May 29. "We still see ample upside as a better-than-feared 1Q should inspire investor conviction about sequential recovery in 2Q," Morgan Stanley analysts said in a May 29 report. They have a price target of $36, for upside of more than 20% from Thursday's close. "The management team has found its pace for a steady and solid comeback, underpinning a more material resurgence of volume/margins into 2H25 amid new model launches," the analysts added. "Li Auto's premium model lineup can steer clear of the fierce pricing competition in the mass market." Li Auto is best known for its SUVs that come with a gas tank for extending the battery's driving range. Prices start around 244,000 yuan ($34,000). Industry giant BYD in contrast now sells some cars at 55,800 yuan, with most models falling in the 100,000 yuan to 200,000 yuan price range. The company also has a high-end sub-brand called Yangwang, which prices cars at well above 1 million yuan. Analysts that still like the stock see potential in BYD's overseas expansion. The narrative on BYD among European investors "sounds more optimistic," contrary to more cautious sentiment in China following the automaker's recent price promotions, JPMorgan's Nick Lai, head of Asia Pacific auto research said in a report Wednesday. Lai and his team also cited conversations with senior BYD management in London in the last week. "All in all, we retain our long-term positive view on the company and believe the (earnings) contribution from the overseas market and BYD's premium portfolio will increasingly play an important role," the JPMorgan analysts said. "We estimate that BYD's overseas business and premium brands will together contribute over 40% of its vehicle earnings in 2025 (up from 20-25% last year) even though they account for only about 20% of volume." The analysts rate BYD overweight, with a price target of 600 HKD. However, the risk of a flood of cheap cars into markets such as Europe have prompted tariff increases. In China, official commentary is also sounding the alarm about excessive competition. "We believe an end to the current price war will come down to simple economics," the Macquarie analysts said, pointing out that production capacity for both electric and traditional vehicles is more than 50 million units, well above the annual wholesale volume of 25 million to 27 million vehicles. "Thus, the market will likely stabilize either via higher demand or right-sized capacity and consolidation," the analysts said. "We believe this may take at least another three to five years." — CNBC's Michael Bloom contributed to this report.
