After Vedanta, it is now Adani Power to announce delisting plans.
The company is holding a Board meeting on 3rd June, Wednesday to consider delisting. The promoters currently hold 74.97% stake and they plans to buyback the entire public holding of 25.03%.
The company has given its reasons for delisting:
(i). 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;
(ii). We further believe 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;
(iii). Our long term business plan involves expanding our 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;
(iv). 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 market has reacted positively to this news; the stock opened 10% higher at Rs.40, its current intraday high. Its 15% UC for the day is at Rs.41.85 while its 52-week high stands at Rs.73.75.