Gautam Adani plans to delist Adani Power, stock surges over 8%, Board to consider proposal this week

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June 1, 2020 11:12 AM

India’s fifth richest man, Gautam Adani, is considering taking his energy utilities firm, Adani Power off the stock markets.

power generating companies, CRISIL Ratings , liquidity infusion, Nirmala Sitharaman, discoms, coal-based power generation,As on June 1, the promoter group of Adani Power held 289.16 crore shares of the company, translating to a total of 74.97% of the total number of shares.

India’s fifth richest man, Gautam Adani, is considering taking his energy utilities firm, Adani Power off the stock markets. Taking cognizance of the announcement the Adani Power shares surged 8.14% on Sensex to trade Rs 39.20 per share. In a filing to the market regulator, Adani power said that the promoter group has expressed the intention to delist the company, either by itself or together with other members of the Promoter Group. Adani Power’s Board will meet on June 3, to consider the proposal for voluntary delisting of the equity shares of the Company received from Adani Properties Private Limited, the company said. A buy-back offer has not surfaced so far.

In order to de-list Adani Power, the promoter group will have to acquire all the equity shares, each having a face value of Rs 10. As on June 1, the promoter group of Adani Power held 289.16 crore shares of the company, translating to a total of 74.97% of the total number of shares. Of this, Gautam Shantilal dani and Rajesh Shantilal Adani held 36.43% on behalf of S.B Adani Family Trust. While Foreign promoters held 28.33%. Public shareholders of Adani Power held 25.03% in the company with a total of 96.5 crore shares. 

“Pursuant to the Delisting Proposal Letter, the board of directors of the Company have been requested to consider and approve the Delisting Proposal in accordance with the SEBI Delisting Regulations,” the company said. Gautam Adani, who owns India’s largest private port in Mundra, follows the steps taken by Anil Agarwal of Vedanta. Agarwal, last month announced a share buy-back plan to take his mining major Vedanta Ltd private in a Rs 16,000 crore plan. Vedanta informed the market regulator that the company will offer Rs 87.5 per share to purchase 185 crore shares of 49% minority stake in the company. 

Adani Power shares on the bourses tanked 60% in the first three months of 2020. Since then, the stock has gained only 50% of that value. Gautam Adani led promoter group, however, has not disclosed any plans to take Adani Ports and Special Economic Zone stock off the share market. The Port services company of the Adani Group has jumped 60% since its March lows to trade at Rs 332 per share. 

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