And that meant really lucrative margins for Vedanta. In contrast to that, when a public company chooses to go private – it has to delist from the stock exchanges – which means that the shares of that company will no longer be available for trading on the platform provided by the stock exchange. Save my name, email, and website in this browser for the next time I comment. People trust it more – since the nitty-gritties of the business are no more in the dark. Shares of the company were trading at Rs 37.85 apiece on BSE in afternoon session, down 0.39 per cent from their previous close. Yeah. Many shareholders to approach SEBI against... At last CBI books Adani Enterprises for irregularities in the coal supply contract, Major Gaurav Arya on China, Xi’s future as Premier, LAC violations, Hong Kong and CPEC. How does it affect you as a shareholder? You have that flexibility as a promoter too. Tweet your thoughts to me @pujit3112 and do let me know what else you’d like to read. But, have you heard about ‘Deflation’? Adani Power share price high is about -10% of the candle stick body. That’s hard to achieve, but let’s say it’s done. So if promoters own 70% of the company, it has to buy back at least 20% of the shares from the public to go private. In the last 12 months, Adani Power’s share price has halved from a high of ₹ 73.75 to the current level of ₹ 36.40, making delisting by the promoter group an attractive and affordable option. It thus makes strategic economic sense to decide to delist your company if the costs outweigh the benefits. Recently Gautam Adani’s firm … But before that, consider subscribing to our weekly newsletter for more insightful content like this . Here’s the NSE and BSE listing fee structure. A meeting was held on June 3 to engage Merchant Bankers to look into the delisting procedures. “In view of the foregoing, it is imperative that SEBI must reject the delisting proposal of Adani Power and order an investigation against the Adani Group for their conduct in the entire matter,” said a minority shareholder in Adani Power, who is planning to approach SEBI against the delisting. I am not aware of an area called Vadra Pradesh! You have entered an incorrect email address! Additionally, the Promoters want to deprive the minority investors of their share (25%) of the said potential windfall gains of Rs.27,000 crores over the next few quarters. What could have been over within a few hours of a meeting, might take days with the board and shareholder approval. Bad place to be at, no doubt – right? Even at a conservative interest rate of 10% per annum with compounding over last 11 years (i. e. since the time of IPO in August 2009), gullible investors will have been fleeced by more than Rs.15,000 crores by the Promoters of Adani Power if the attempt to delisting is approved. Alright, there are a few other reasons for firms to voluntarily delist…. Recently Gautam Adani’s firm has been caught in the coal import scam. Global commodity prices were at an all-time high around 2010, and that’s also when Vedanta’s stock price was at all-time highs – obviously – because the end product that Vedanta was selling – metals – were quoting at handsome prices in the global market. It is reported in Corporate circles that more than Rs.41,000 crores were obtained by pledging shares and Adani Group’s total loans has reached around Rs. If adani have to delist at this Price.. please inform WHY they Did Not do the same Delisting with Adani Green CMP 1040 earlier. And then you can compare that fair value to the actual price that the company is trading at. This is done mainly because the company has failed to comply with the rules and regulations provided to it as part of the ‘Listing Agreement’, when it became public. It is noteworthy that the company has obtained certain favorable judgments on various disputes pertaining to their PPAs (Power Purchase Agreements) with Gujarat discoms, Haryana discom, Maharashtra discom, and Rajasthan discom. Whether it’s ethical or not is a whole different argument, but if you get to buy the rest of your company out for less than what it’s worth, you would/should definitely do it. Oh, and going back to where we began – in case you were wondering – here’s a handy guide for understanding inflation. If shareholders object to the timing of delisting … Adani Power said that the plans to delist was in-line with its strategy to expand its operations into new geographies and new business activities, which may have different risk profiles, longer gestation periods compared to the current risk profile of the company. By using this form you agree with the storage and handling of your data by this website. That’s why Vedanta and many other firms like to delist from the stock exchange when their stocks have tested low prices amid market overreactions. Many shareholders to approach SEBI against the delisting AP2061. But, thankfully we do have some procedures in place to protect shareholder interests. So yes, being a listed company has its costs, and it should be carefully weighed with the benefits of being listed. Promoter hold 75% shares in adani power. As per a recent IDFC securities report, the company is expected to potentially receive over Rs.27,000 crores through favorable orders in these cases over the next few quarters,” said a noted Stock Broker. Now, for some reason (not so important, but we’ll get to it in a bit), the stock price of your firm has taken a hit and now its trading at really low levels – much lower than it should be after taking into consideration the future prospects of the company. Maybe you have, maybe you have multiple shareholders in a statement that done! Postal ballot SEBI must stop this fraud of de-listing after collecting money investors! Approves voluntary delisting and Involuntary delisting mines commodities like copper, zinc, iron ore,.. Thankfully we do have some procedures in place to protect shareholder interests coal import scam they are doing shareholder! 14.67 lakh shares on the stock market, it pays to know to understand how a company being to... 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