Adani Power Delisting Proposal Gets Shareholders’ Approval
Final delisting prices are determined by a reverse book-building process and require approval from at least 90% of shareholders.
Adani Power Ltd. on Friday said that a majority of its shareholders have passed a resolution to voluntarily delist the company from the bourses.
The power utility of the Adani Group said in an exchange filing that nearly 84% of its public institutional shareholders voted on the resolution on July 23—around 96% of whom favoured delisting. Among retail shareholders, the corresponding figures stood at 56% and 98.5%, respectively.
The company said Adani Properties Pvt., a promoter group entity, had on May 29 agreed to acquire all equity shares of the company—having face value of Rs 10 apiece—from its public shareholders. Shares of Adani Power have fallen by around 4% since May 29 compared with the BSE Power Index’s 5% gain during the same period.
Adani Power’s promoters held 74.97% stake in the company as on June, while the remainder was with public shareholders, according to exchange data.
Final delisting prices are determined by a reverse book-building process and require approval from at least 90% of shareholders, according to Securities and Exchange Board of India’s regulations. The recent changes to delisting rules allow the acquirer to make a counter offer if the price discovered during the reverse book-building isn’t acceptable.
Delistings also allow corporates to simplify or reorganise complex group structures without the interference of large minority investors. More efficient group structures could lead to improved operations and faster execution. But a highly concentrated shareholding could increase governance risks, Fitch Ratings said in a recent report.