Adani in Talks to Buy Stake in Diamond Power Infrastructure Ltd (DPIL): Report

Adani Group is reportedly in discussions to acquire a stake in Diamond Power Infrastructure Ltd (DPIL), a power infrastructure company based in Ahmedabad. DPIL specializes in manufacturing cables, conductors, and transmission towers, and also undertakes turnkey transmission line projects.

According to a report by The Economic Times, Adani Group is leading the race among three potential buyers, with a final deal expected within 60 days. If Adani secures the stake, it is likely to retain the existing management, following a strategy it has used in previous acquisitions like PSP Projects Ltd and ITD Cementation India.

Founded in 1992, Diamond Power Infrastructure Limited (DPIL) is a power infrastructure company based in Vadodara, Gujarat. It specializes in manufacturing insulated wires, cables, conductors, and transmission towers, along with turnkey transmission line projects.

DPIL was previously known as Diamond Cables Limited and has undergone restructuring under the National Company Law Tribunal (NCLT) process. It has a strong presence in India's transmission & distribution (T&D) sector, supplying products under the DIACABS brand.

In 2022, DPIL was taken over by a consortium including GSEC Ltd and businessman Rakesh Shah through the National Company Law Tribunal (NCLT) process. Currently, DPIL’s promoters hold 90% of the company, but SEBI regulations require them to reduce this to 75%, prompting the stake sale discussions.

The stake sale is driven by SEBI regulations, which require DPIL's promoters to reduce their holding from 90% to 75%. A final deal is expected within 60 days, and Adani is likely to retain the existing management if it secures the stake.

This move aligns with Adani’s broader capital expenditure push, with plans to increase capex to ₹1.4-1.45 trillion, up from ₹1.26 trillion in the previous year. DPIL, in turn, aims to use the funds from the stake sale to expand its operations and target ₹10,000 crore in revenue over the next three years, compared to ₹343 crore in FY25.