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Shares of Adani Enterprises gained 4.83% to `584 on Thursday on BSE, while the exchange’s benchmark Sensex gained 0.41% to 29,681.77 points. Photo: Pradeep Gaur/Mint
Shares of Adani Enterprises gained 4.83% to `584 on Thursday on BSE, while the exchange’s benchmark Sensex gained 0.41% to 29,681.77 points. Photo: Pradeep Gaur/Mint

Adani Enterprises likely to revamp shareholding pattern

Shareholders of Adani Enterprises may getshares in Adani Power and Adani Ports and Special Economic Zone

Mumbai: Billionaire Gautam Adani-controlled Adani Enterprises Ltd is likely to reorganize its shareholding in some of its units to unlock value, according to two people close to the development.

As part of the plan, shareholders of Adani Enterprises may get some shares in Adani Power Ltd and Adani Ports and Special Economic Zone Ltd (APSEZ), one of the two people cited above said. Mint could not ascertain the details of the share swap.

The arrangement will dilute Adani Enterprises stake in these two companies.

As of 31 December, Adani Enterprises owns 68.99% in Adani Power and 74.99% in Adani Ports.

“Adani Enterprises is looking at maximizing the value of the shareholders and for that the company is looking at all options. A final decision would be announced after the board meeting on Friday," the person said.

Consulting firm KPMG Advisory Services Pvt. Ltd is advising Adani on the restructuring, the second person said.

Both the people requested anonymity. 

Adani Enterprises is expected to make the announcement after its board meeting on Friday.

The company currently acts as a holding company for Adani Ports and Adani Power.

Apart from these businesses, Adani Enterprises has units such as commodities, logistics and agribusiness.

If the transaction takes place, it will be a positive for shareholders, according to Deven Choksey, managing director of KR Choksey, a brokerage.

“At present, Adani Enterprises has a controlling stake in Adani Power and APSEZ, so there is an inherent holding company discount in the valuation of the company and the real value of the other verticals of the business is not reflected," Choksey said.

Investors are at a loss currently as they are getting a trading discount, he added.

“If the shareholders get an equal amount of shares in Adani Power and Adani Ports, then they will unlock value," Choksey said.

An Adani Enterprises spokesperson declined to comment.

“The board discusses various alternatives as may be feasible to pursue. As of today, there is no such decision taken," the company said in a clarification to the exchanges on Thursday.

In November, Adani Enterprises had said it will sell its stake in Maharashtra Eastern Grid Power Transmission Co. Ltd to a subsidiary.

Adani Enterprises will sell the 707.5 million equity shares it holds in Maharashtra Eastern Grid to Adani Transmission Ltd. The price will be determined on the basis of an independent valuation report and subject to requisite approvals, it said in a note to the exchanges.

Shares of Adani Enterprises gained 4.83% to 584 on Thursday on BSE, while the exchange’s benchmark Sensex gained 0.41% to 29,681.77 points. The stock of Adani Ports gained 1.1% to close at 343.60 and Adani Power gained 3.51% to 51.55.

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