Adani Power's board to meet today to consider delisting proposal

Adani Power Limited
Adani Power Limited

Indian billionaire Gautam Adani has plans to delist Adani Power Ltd from the stock exchanges.

Indian billionaire Gautam Adani has plans to delist Adani Power Ltd from the stock exchanges. Furthering the plan, the board of directors of the privately-owned power generation company is scheduled to meet today, June 22, 2020, to consider and approve the proposal for voluntary delisting of the equity shares of the company received from Adani Properties Private Limited (APPL) and related matters incidental thereto.

The proposal to buy out the company's public float has come from promoter firm Adani Properties Pvt. Ltd. As of March, 25.03 per cent of the company was held by public shareholders, primarily by foreign portfolio investors and overseas corporate bodies.

Adani Power's share price has halved in the last twelve months from a high of Rs 73.75 to the current level of Rs 37.95. This drop in the share prices has made delisting by the promoter group an attractive and affordable option. At the current price, the delisting proposal would amount to about Rs 3,520 crore.

Several Adani group companies are listed on the Indian stock exchanges and they include Adani Enterprises Ltd, Adani Ports and Special Economic Zone Ltd, Adani Transmission Ltd, Adani Green Energy Ltd and Adani Gas Ltd besides Adani Power.

According to the delisting proposal letter, the board of directors of the company will consider the following points:

(a) To take on record and review the due diligence report prepared by the Merchant banker.

(b) To approve/ reject the Delisting Proposal.

(c) Such other acts as may be required following the provisions of Regulation 8 of the SEBI Delisting Regulations and

(d) Any other matters incidental thereto.

The board earlier during its meet held on June 3, 2020, decided to

(a)Take on record the letter dated May 29. 2020 received from APPL

(b) Appoint Vivro Financial Services Private Limited. ("Merchant Banker") to carry out due diligence in terms of SEBI Delisting Regulations and submit their report to the Board.

Earlier in May 2020, commodities, major Vedanta Ltd had made a similar offer to its minority investors.

Show Full Article
Print Article
Download The Hans India Android App or iOS App for the Latest update on your phone.
Subscribed Failed...
Subscribed Successfully...
Next Story
More Stories