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Adani Group Leads Race to Acquire Stake in Diamond Power Infrastructure Ltd

The Adani Group has emerged as the leading contender to acquire a significant stake in Ahmedabad-based Diamond Power Infrastructure Ltd (DPIL), as part of its broader strategy to strengthen its control over the power transmission value chain. DPIL, a vertically integrated player in the power infrastructure space, operates across key segments such as cables, conductors, transmission towers, and turnkey project execution.

Sources indicate that two other parties are also in the running, but Adani's aggressive expansion plans and need to secure a robust vendor ecosystem put it ahead. The acquisition would support Adani’s increased capex in the transmission and distribution sector, aligning with its infrastructure growth ambitions.

DPIL, with a market capitalization of Rs5,000 crore, plays a key role in India's electrical industry, which currently accounts for nearly 40% of the sector and is expected to grow from $8.7 billion in 2023 to $17 billion by 2032. The promoters of DPIL are required to reduce their stake from 90% to 75% in line with SEBI's public shareholding norms, paving the way for a strategic investor.

Despite the potential change in ownership, the existing management may continue to handle operations, ensuring continuity. This potential deal highlights the consolidation trend in India's power equipment manufacturing sector, driven by demand for grid modernization and renewable integration.