(Reuters) – Indian billionaire Gautam Adani is considering a bid for the bankrupt coal-fired power plants belonging to industrialist Anil Ambani, Bloomberg News reported on Tuesday, citing people familiar with the matter.
The plants are currently being auctioned by an Indian bankruptcy court.
Adani may face tough competition for Ambani-owned Vidarbha Industries Power Ltd, which operates the 600-megawatt generation facilities in Nagpur in the western Indian state of Maharashtra.
Ambani’s Reliance Power Ltd (RPOL.NS) will also likely make an offer to win back control of the firm, the report added.
Last week, Adani Green Energy Ltd (ADNA.NS) approved raising 123 billion rupees ($1.49 billion), while two other Adani group companies – Adani Transmission (ADAI.NS) and Adani Enterprises (ADEL.NS) – had in May outlined plans to raise funds totalling $2.57 billion.
Adani’s bids are aimed at strengthening the company’s growing portfolio of coal power projects, the report said.
The embattled conglomerate’s seven listed entities have lost more than $100 billion in market value since a report by short-seller Hindenburg Research in January accused the group of unlawful use of offshore tax havens and stock manipulation. Adani has denied the allegations.
Adani Enterprises or Reliance Power did not immediately respond to a Reuters’ request for comment
