Gujarat Exclusive > National-World > What is the truth about delisting buzz of Adani Power?

What is the truth about delisting buzz of Adani Power?

0
1722

There is a buzz in the stock market that after Vedanta, Adani Group is planning to delist Adani Power from the bourses. The buzz is quite strong and according to some market experts, the promoters are planning to buyback the entire public shareholding.

Earlier, on 12 May, Vedanta Metals and mining giant Vedanta had announced its plans to delist at an indicative offer price of Rs 87.5. The Board of the company approved the delisting proposal at a floor price of Rs 87.25 on May 18.

After Vedanta’s decision to delist, people are talking about the possible delisting of Adani Power. Presently, around 25 per cent of Adani Power is held by the public through stocks.

However, Adani Power last Wednesday told SEBI that Madhya Pradesh Electricity Regulatory Commission has approved setting up of a 1,320 MW thermal power plant in Madhya Pradesh.

Adani Power stocks have crashed more than 45 per cent in the year against the overall market crash of around 30 per cent. For many reasons, Adani Power stocks have not performed as per the expectations of the promoters. The stock closed at Rs 40.10 on Tuesday. However, the stocks have performed better in the past 10 days. The 52-week high and low of Adani Power stands at Rs 73.80 and Rs 23, respectively.

Mostly companies delist when they feel that the actual valuation of the company is quite high and the stock prices don’t reflect that valuation. In case of getting investment, this lower valuation of stocks hampers the prospects of investment.

The company is yet to respond to communications made by Gujarat Exclusive for a reaction in this regard.

India’s COVID-19 tally nearing 2 lakh, death toll at 5,598