Adani Power shares surge 10% as Gautam Adani plans to delist Co

The board of Adani Power is scheduled to meet on Wednesday to consider the proposal for voluntary delisting of the equity shares of the Company

Shares of Adani Power rose 10 per cent to Rs 40 on the BSE on Monday after the Gautam Adani- promoted electric utilities company said its board will meet to consider delisting the company from the stock exchanges.

“The meeting of board of directors of Adani Power to be held on Wednesday, June 03, 2020 to consider the proposal for voluntary delisting of the equity shares of the Company received from the promoter company,” Adani Power said in an exchange filing.

As of the date, the Promoter Group collectively holds 74.97 per cent of the paid-up equity share capital of Adani Power. Public shareholders hold the remaining 25.03 per cent stake in the company, of which 12.35 per cent is with foreign portfolio investors and 7.40 per cent holding's with other institutional investors.

The promoters, Adani Properties, said 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 promoter believes that the delisting proposal will enhance the Company's operational, financial and strategic flexibility including but not limited to corporate restructurings, acquisitions, exploring new financing structures including financial support from the Promoter Group, it said.

The company’s long-term business plan involves expanding 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, it said.

At 12:08 pm, Adani Power was trading 8 per cent higher at Rs 39.35 on the BSE, as compared to 3.4 per cent rise in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined around 43 million equity shares changing hands on the NSE and BSE so far. In the past one month, the stock has rallied 25 per cent, against 1 per cent decline in the benchmark index.