MUMBAI: Investors in Adani Power are a disappointed lot as the company's board on Monday set the floor price for delisting of shares at ₹33.82 apiece, nearly 11% below the market price.
The shares fell nearly 3% following the news. They later recovered some losses and were at ₹37.80, down 0.53% on the BSE.
Adani Power’s board of directors had approved the delisting proposal by group company Adani Properties Pvt Ltd.
In an exchange notification after the board meeting, the company said the floor price of ₹33.82 was arrived at in accordance with "Regulation 15(2) of the SEBI Delisting Regulations read with Regulation 8 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011".
Last month, Adani Power, a private-sector power generation and distribution company, informed stock exchanges that its board of directors would consider a proposal at its next meeting to voluntarily delist its shares.
In the last 12 months, Adani Power’s share price has halved from a high of ₹73.75, making delisting by the promoter group an attractive and affordable option. As of March, 25.03% of the company was held by public shareholders, primarily by foreign portfolio investors and overseas corporate bodies.
The company has a power generation capacity of 12,410 megawatts across six states in India. The company has said delisting will enhance the company's operational, financial and strategic flexibility including its ability to undertake corporate restructurings, acquisitions, exploring new financing structures.
