MUMBAI: In the backdrop of recent allegations of fraud against the Adani group by Hindenburg Research and the significant meltdown in its stock prices and following the recall of its follow-on public issue of over Rs 20,000 crore, one of its key group company Adani Power today said that it's Rs 7,0170 crore bid to buy the assets of DB Power has fallen through.

In a regulatory communication sent to exchanges today Adani Power said, "We wish to inform you that the long stop date under the memorandum of understanding dated August 18, 2022, has expired."

DB Power which is operating a thermal power generating station in Janjgir Champa, Chhattisgarh fully backed by fuel supply agreements with Coal India Ltd has long and medium-term power purchase agreements for 923.5 MW of its capacity and is considered a profit-making asset.

Hoping to significantly enhance as one of the country's largest players in power generation (especially thermal) and distribution sector from its current capacity of 13.6GW across several thermal plants across five states, Adani Power had entered into a memorandum of understanding (MoU) with DD Power on October 31, 2022. 

Later the deadline for the transaction was extended four times first till November 30, 2022, December 31, 2022, January 17, 2023, and till February 15, 2023, when it was allowed to lapse. In 2021 Adani Power had its second-biggest acquisition in the electricity sector when it acquired SB Energy India for an estimated Rs 26,000 crore.