Adani Power board approves delisting plan which will cost Rs 3,264 cr

• Adani Power has worked out a floor price of Rs 33.82 per share to buy 96.53 crore equity shares with the public for about Rs 3,264 crore
• The Adani Power board has approved the proposal after evaluating report of merchant banker Vivro Financial Services Ltd

New Delhi: The board of Adani Power has given its nod to the delisting proposal floated by the promoter group, Adani Group said in a regulatory filing to the stock exchanges on Monday. Adani Power has worked out a floor price of Rs 33.82 per share to buy 96.53 crore equity shares with the public for about Rs 3,264 crore. The company said that it will seek a nod from its shareholders for delisting from BSE and NSE via postal ballot.

The board "granted approval… to the delisting proposal and consequent voluntary delisting of equity shares of the company from stock exchanges subject to receipt of all necessary approvals as may be required for delisting proposal, after having discussed and considered various factors and the report," the filing said.

Adani Power board approved delisting after evaluating report

The Adani Power board has approved the proposal after evaluating report of merchant banker Vivro Financial Services Ltd. The merchant banker, which was appointed by the board earlier this month, stated in its report that "the delisting proposal is in interest of shareholders of the company." The report also stated that the company is in compliance with applicable provisions of securities law for delisting. It also stated that APPL (Adani Properties Private Ltd) and other members of the Promoter Group or their related entities are in compliance with Delisting Regulations. 

The board also "took on record the letter dated June 22, 2020 from APPL informing that as per the certificate dated June 22, 2020 issued by Dharmesh Parikh & Co. Chartered Accountants Rs 33.82 is the floor price per Equity Share."

The backdrop

In May, APPL had proposed the delisting of the company from the stock exchanges. The promoter group owns 2,89,16,12,567 equity shares of the company, which is 74.97 percent of the paid-up equity share capital. Public shareholders, on the other hand, hold 96,53,26,374 equity shares or 25.03 percent of the paid-up equity share capital. Shares of Adani Power closed at Rs 38.20 apiece on BSE on Monday, up 0.53 percent from the previous close.

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