Shares of Adani Energy Solutions Ltd (AESL) fell sharply by nearly 4% on Monday, extending Friday’s decline of almost 3%. The continuous slump comes after the Tamil Nadu Power Distribution Corporation (TANGEDCO) canceled a global tender for smart meters, citing the high costs quoted by AESL.
Key Developments:
- Tender Cancellation:
TANGEDCO canceled the tender on December 27, 2024, which involved installing over 82 lakh smart meters under the central government’s revamped distribution sector scheme. AESL was the lowest bidder for one of the four tender packages covering eight districts, including Chennai.
However, the quoted costs were deemed too high, leading to the tender’s cancellation. A re-tender is expected to be floated soon. - Impact of Allegations:
The controversy surrounding Gautam Adani, promoter of the Adani Group, over alleged bribery of over USD 250 million (₹2,100 crore) to Indian officials for favorable solar power contracts has further impacted investor sentiment. - Market Performance:
- Monday’s Price: Shares of AESL traded at ₹793.85, down 3.34% (₹27.40) from the previous close of ₹821.25.
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