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    Gautam Adani plans to delist Adani Power

    Synopsis

    Adani Power promoters intend to buyback all shares of the company and delist it.

    Agencies
    The decision on this will be taken in the next board meeting of the company.

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    Mumbai: Billionaire Gautam Adani plans to delist his group’s power utility, Adani Power close on the heels of Anil Agarwal announcing the delisting plans of Vedanta Ltd.

    Adani Power promoters intend to buyback all shares of the company and delist it from the bourses. The decision on this will be taken in the next board meeting of the company.

    That has a power generation capacity of 12,410 megawatts across six states in India.

    Promoters of the company hold 74.9% stake in the company. Shares of the company closed at Rs 36.40 on the Bombay Stock Exchange, having almost declined to half from its 52-week high of Rs 73.75 that was touched in November last year.

    The company said that the proposed delisting will enhance the company's operational, financial and strategic flexibility including its ability to undertake corporate restructurings, acquisitions, exploring new financing structures.

    “The objective of the delisting proposal is to enable the promoter group to obtain full ownership of the company, which in turn will provide enhanced operational flexibility. As the company will no longer remain listed in India, there will be reduction in dedicated management time to comply with the requirements associated with the continued listings, which can be refocused on the company's business,” the disclosure stated.

    Adani Power said that the plans to delist was in-line with its strategy to expand its operations into new geographies and new business activities, which may have different risk profiles, longer gestation periods compared to the current risk profile of the company.

    “We believe that the delisting proposal is in the interest of the public shareholders as it will provide the public shareholders an opportunity to exit from the company at a price determined in accordance with the SEBI Delisting Regulations, providing immediate liquidity given the heightened market volatility,” the company said.

    Valuations of many companies have declined as the lockdown due to the Covid-19 pandemic has aggravated the muted business they experienced before the pandemic. This offers a good opportunity for promoters to buyback shares at attractive rates but may leave minority shareholders with little choice.

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    14 Comments on this Story

    Bharat Doshi15 days ago
    Small Share holders are feeling duped. Purchased in 2009 at 100/- now after 11 years getting only 35/-. Going Reliance Power way, where almost entire capital has been lost by Shareholders. Expected much better from Adani Group. Sebi must modify rules to protect at least a capital of small shareholders. Confidence building takes years and with this type of maneuver retail investors feel powerless.
    Ravindra Marballi66 days ago
    The Chairman of Adani Power is an opportunist.During the time of downtrend of Share market,he is taking advantage of low share prices & getting Company delisted, wherein the only persons benifitting are the promoters. SEBI should have some strong rules not to allow companies to get delisted for some flimsy reasons & benifitting from the down trend. Or if they want to delist at any cost, then they should pay minimum IPO price all the years they have benifited by IPO price & created a company which the promoters only will get benifits so A substantial premium amount also should be given above the IPO price. SEBI should take note of this & create rules/laws on opportunistic delisting. Hope action is taken on companies like Vedanta & Adani Power.
    Regards
    KK70 days ago
    I am reading very absurd comments. If you are a shareholder, the promoter will have to buyback the minority shareholders shares to delist. No one is snatching shares from you. If you do not want to sell your shares at offer price, you have a choice. The offer to delist will increase the price of the share. The only question should be if the company has been run well from ipo date till date to command good valuation. Note the promoter already holding almost 75%, it is more in their interest that share price does well.
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