After surging 15% in the last three days, the share price of Adani Power tanked over 8.7% from the day’s high on Wednesday as the Board of Directors took on record the proposal to delist the company from the stock exchanges.
After surging 15% in the last three days, the share price of Adani Power tanked over 8.7% from the day’s high on Wednesday as the Board of Directors took on record the proposal to delist the company from the stock exchanges. The share price of Gautam Adani’s energy utilities firm was trading at Rs 42.2 per share before falling to Rs 38.8 apiece. Adani Properties limited expressed the intention to delist the company, either by itself or together with other members of the Promoter Group earlier this week. A share buyback offer has not yet surfaced.
The Board of Adani Power after taking the proposal on record has also appointed Vivro Financial Services Private Limited, as Merchant Banker registered with the Securities and Exchange Board of India in accordance with Regulation 8(1A)(ii) of the SEBI Delisting Regulations. The merchant banker will be provided all the details by the company in the coming days after which the due diligence process will be carried out. “After the receipt of the due diligence report from the Merchant Banker, the Board will again meet to discuss the Delisting Proposal in detail,” Adani Power said.
Gautam-Adani led Adani Power is the second big name to be considering taking the company off the stock market, after Anil Agarwal’s Vedanta Limited. 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. Currently, the promoter group of Adani Power holds 289.16 crore shares of the company, translating to a total of 74.97% of the total number of shares. Of this, Gautam Shantilal Adani and Rajesh Shantilal Adani hold 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.
Shares of other Gautam Adani firms were seen soaring on Wednesday, Adani Green shares were up 5% hitting an upper circuit, Adani Gas share price jumped over 12%. Domestic benchmark indices Sensex and Nifty continued their upward trajectory jumping over 1.8% each. Nifty 50 for the first time since the middle of March reach the 10,000 mark, on the other hand S&P BSE Sensex was close to 34,500 points.