so far has maintained a strategy to incubate a business and monetise it through public listing later. Listed in 2009,
was one of the early public listing offerings from the conglomerate. In 2015,
announced a business restructuring plan, by which its ports and power business was merged with Adani Ports and SEZ and Adani Power, respectively, and the transmission business was listed separately.
In its letter to Adani Power’s board, the promoter said the delisting
would enable the group to obtain full ownership, and provide enhanced operational and strategic flexibility. The promoters in the letter added the delisting would also allow flexibility for “options like corporate restructurings, acquisitions, exploring new financing structures including financial support from the promoter”.
Some analysts, however, do not accept the delisting rationale.
“The promoters already have enough control of the company. It sends a wrong message to shareholders of other listed entities of the group,” said an analyst.
The promoter and promoter group own 74.97 per cent of the voting rights in Adani Power.
Adani Gas, Adani Transmission, Adani Ports and SEZ, Adani Green Energy, and Adani Enterprises
are the other listed companies
of the conglomerate.
“Many of these cases (of proposed delisting) may be due to the prevailing market price, which is half the book. The promoters may be seeing an opportunity in delisting and bringing it back after a couple of years,” said a senior industry expert.