Adani Group’s billionaire founder Gautam Adani has decided against bidding for a stake in electricity trader PTC India Ltd as the beleaguered conglomerate looks to conserve cash amid a short seller attack, Bloomberg News reported on Monday.
Bloomberg reported in January that Adani was among the possible bidders reviewing preliminary information on the state-run Mumbai-listed company. Adani will not proceed with any offer for the energy trading firm, the report said, citing people familiar with the matter.
Adani Group and PTC India did not immediately respond to Reuters’ requests for comment.
The reported decision to back out of the bid comes amid investor concerns regarding the financial health of the group after a U.S. short seller alleged improper use of offshore tax havens, stock manipulation and high debt levels – allegations the Adani Group has rejected.
The conglomerate had earlier said that its companies face no material refinancing risk or liquidity issues in the near term.
State-run companies Power Grid Corporation, Power Finance Corporation, NTPC, and NHPC were reported to be planning to sell their about 4% stakes each in PTC India in late December.
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