{"id":2192,"date":"2020-06-12T20:27:00","date_gmt":"2020-06-12T20:27:00","guid":{"rendered":""},"modified":"2025-11-06T23:54:12","modified_gmt":"2025-11-06T18:24:12","slug":"delisting-of-shares-of-adani-power","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/delisting-of-shares-of-adani-power\/","title":{"rendered":"What Delisting of Adani Power Shares Means for Shareholders?-Research &#038; Ranking"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div>\n<p>A few days back Billionaire Gautam Adani led Adani Power to announce its intention of Delisting of shares from Indian stock exchanges with its promoter firm Adani Properties, proposing to buy out the company\u2019s publicly listed shares.<\/p>\n\n\n\n<p>The promoter group collectively holds 74.97% of the paid-up equity share capital in the company, whereas public shareholders own 25.03% currently. The company has appointed a merchant banker named Vivro <a href=\"https:\/\/www.equentis.com\/blog\/what-is-financial-advisory-complete-guide\/\">Financial Services<\/a> Pvt Ltd to assess the proposal to delist its equity shares from <a href=\"https:\/\/www.equentis.com\/blog\/national-stock-exchange-of-india-functions-features-and-top-companies\/\">NSE<\/a> and <a href=\"https:\/\/www.equentis.com\/blog\/explore-bombay-stock-exchange-what-is-bse-advantages-of-listing-and-investment-methods\/\">BSE<\/a>.<\/p>\n\n\n\n<p>Headquartered at Ahmedabad in Gujarat, Adani Power Limited is the power business subsidiary of Indian conglomerate Adani Group. The company is India&#8217;s largest private thermal power producer, with a capacity of 12,410 megawatts across six states in India.<\/p>\n\n\n\n<p>This move by the Adani group to delist Adani Power shares comes close on the heels of delisting plans of Vedanta Ltd. announced by its Founder &amp; Chairman, Anil Agarwal.<\/p>\n\n\n\n<figure class=\"wp-block-embed aligncenter is-type-wp-embed is-provider-research-and-ranking wp-block-embed-research-and-ranking\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"VbjAzMZQlW\"><a href=\"https:\/\/www.equentis.com\/blog\/adani-group-stocks\/\">Why Adani Group Stocks Are Falling? &#8211; Research &#038; Ranking<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Why Adani Group Stocks Are Falling? &#8211; Research &#038; Ranking&#8221; &#8212; Research and Ranking\" src=\"https:\/\/www.equentis.com\/blog\/adani-group-stocks\/embed\/#?secret=XjcqMynbqa#?secret=VbjAzMZQlW\" data-secret=\"VbjAzMZQlW\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Adani Group is planning on delisting of Adani Power shares?<\/strong><\/h2>\n\n\n\n<p>As per an official statement issued by Adani Power, the proposed delisting of Adani Power shares is expected to enhance the company&#8217;s operational, financial and strategic flexibility.<\/p>\n\n\n\n<p>&#8220;The objective of the delisting proposal is to enable the promoter group to obtain full ownership of the company and provide enhanced operational flexibility,&#8221; stated a disclosure issued by Adani Power.<\/p>\n\n\n\n<p>This has left many unresolved queries in the minds of investors, with many not sure of how the <a href=\"https:\/\/www.equentis.com\/blog\/delisting-of-shares-of-adani-power\/\">delisting of shares<\/a> will affect their investment.<\/p>\n\n\n\n<p>Through this article, let&#8217;s take a look at the process of delisting of shares and its impact on the shareholders from a layman&#8217;s perspective.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-research-and-ranking wp-block-embed-research-and-ranking\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"xZIGWZjYMo\"><a href=\"https:\/\/www.equentis.com\/blog\/adani-green-energy-to-triple-in-10year\/\">Adani&#8217;s race to triple Adani green energy capacity within the decade<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; visibility: hidden;\" title=\"&#8220;Adani&#8217;s race to triple Adani green energy capacity within the decade&#8221; &#8212; Research and Ranking\" src=\"https:\/\/www.equentis.com\/blog\/adani-green-energy-to-triple-in-10year\/embed\/#?secret=Ncr4cODSkX#?secret=xZIGWZjYMo\" data-secret=\"xZIGWZjYMo\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What is meant by the delisting of shares?<\/strong><\/h3>\n\n\n\n<p>Delisting of shares refers to the removal of a company\u2019s shares from a <a href=\"https:\/\/www.equentis.com\/blog\/what-is-a-stock-exchange-types-definition-explanation\/\">stock exchange<\/a> platform, as a result of which the shares can no longer be traded on the exchange. Delisting of shares can be of two types i.e. voluntary delisting or involuntary delisting.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What is involuntary delisting of shares?<\/strong><\/h3>\n\n\n\n<p>In the case of involuntary delisting of shares, the delisted company, its full-time directors, promoters and group firms are barred from accessing the securities market for ten years from the date of compulsory delisting. Involuntary delisting of shares can happen due to several reasons, such as if the company becomes bankrupt or fails to meet the compliance standards set by the exchange.<\/p>\n\n\n\n<p>In the case of involuntary delisting of shares, the promoters of the delisted companies are required to purchase the shares from public shareholders based on a fair value determined by the independent valuer. In this scenario, investors don\u2019t have any other option.<\/p>\n\n\n\n<p>Kingfisher Airlines, Brandhouse Retails, Elder Pharmaceuticals and Varun Industries are some well-known examples of the companies whose shares were involuntarily delisted in the last few years.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What is the voluntary delisting of shares?<\/strong><\/h4>\n\n\n\n<p>Voluntary delisting of shares happens when the company decides that it would like to purchase all of its shares or merge with another company. In case of voluntarily delisting, the company typically offers shareholders a premium over the current share price in the market.<\/p>\n\n\n\n<p>UTV Software is an example of a company whose stocks got voluntarily delisted after Disney acquired the company.<\/p>\n\n\n\n<p>As per the guidelines prescribed by <a href=\"https:\/\/www.equentis.com\/blog\/sebi-registered-investment-advisor-meaning-eligibility\/\">SEBI<\/a>, in case of a voluntary delisting of shares, the company has to follow the below process:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Company will call for a board meeting after giving written notice to all board members. The proposal for delisting shares is floated, and a resolution to the effect is passed.<\/li>\n\n\n\n<li>Obtain a prior approval of shareholders by a special resolution passed at its general meeting.<\/li>\n\n\n\n<li>Make a public announcement through newspapers with detailed explanation and justification for the proposed delisting.<\/li>\n\n\n\n<li>Submit an application to the relevant exchange in the form specified by the exchange, along with a copy of the special resolution for delisting of shares.<\/li>\n\n\n\n<li>Promoters will offer an exit opportunity to the shareholders at a floor price, which shall be calculated on the basis of the average of 26 weeks traded price quoted on the <a href=\"https:\/\/www.equentis.com\/blog\/reading-stock-charts-the-basics\/\">stock exchange<\/a>.<\/li>\n<\/ul>\n\n\n\n<p>There are several more steps involved until the final delisting is completed. From a shareholder\u2019s perspective, a company which is delisting its shares voluntarily will keep its shareholders informed at different stages.<\/p>\n\n\n\n<p>In case of delisting of <a href=\"https:\/\/www.equentis.com\/blog\/adanis-race-to-triple-its-green-energy-capacity-within-the-decade\/\" target=\"_blank\" rel=\"noreferrer noopener\">Adani Power<\/a> shares, given the low valuations due to market correction in March 2020, it can be considered as an attempt by the promoters to increase their stake at attractive prices. In the last 12 months, share prices of Adani Power fell from a high of Rs. 73.75 to the current level of Rs. 37.80, making delisting an affordable option for promoters. Retail shareholders who entered the stock at high prices, however, would be the biggest losers.<\/p>\n\n\n\n<p>Events like voluntary delisting may be beyond the control of shareholders even if some shareholders of the company may not be in favour of it.<\/p>\n\n\n\n<p>Hence it makes sense to invest in a well-diversified portfolio of 15-18 stocks for optimum wealth creation and diversification of risk. <a href=\"https:\/\/www.equentis.com\/investment-advisory\/mispriced-opportunities\">Click here<\/a> to get started.<\/p>\n\n\n\t\t<div data-elementor-type=\"section\" data-elementor-id=\"9185\" class=\"elementor elementor-9185\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e92a158 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e92a158\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-65b41f6\" data-id=\"65b41f6\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a613ee7 elementor-widget elementor-widget-shortcode\" data-id=\"a613ee7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\">\t\t<div data-elementor-type=\"section\" data-elementor-id=\"6844\" class=\"elementor elementor-6844\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2efdbd0d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2efdbd0d\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-783deaaa\" data-id=\"783deaaa\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c60a2cc elementor-widget elementor-widget-heading\" data-id=\"c60a2cc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Related investing topics<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-3e3de9dd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3e3de9dd\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-40fd5db7\" data-id=\"40fd5db7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-757ca8cb ekit-equal-height-enable elementor-widget elementor-widget-elementskit-icon-box\" data-id=\"757ca8cb\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"elementskit-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"ekit-wid-con\" >        <!-- link opening -->\n                <a href=\"https:\/\/blog.researchandranking.com\/how-to-invest-in-share-market-guide\/\" class=\"ekit_global_links\" target=\"_blank\" rel=\"noopener\">\n                <!-- end link opening -->\n\n        <div class=\"elementskit-infobox text- text- icon-lef-right-aligin elementor-animation-  gradient-active  hover_from_left\">\n                        <div class=\"box-body\">\n                            <h3 class=\"elementskit-info-box-title\">\n                    How to Invest in Share Market?                <\/h3>\n                        \t\t  \t<p>Considering the volatility, investing in stock markets is both an art and science.<\/p>\n                                <\/div>\n        \n        \n                <\/div>\n                <\/a>\n        <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-601073c\" data-id=\"601073c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8b38507 ekit-equal-height-enable elementor-widget elementor-widget-elementskit-icon-box\" data-id=\"8b38507\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"elementskit-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"ekit-wid-con\" >        <!-- link opening -->\n                <a href=\"https:\/\/blog.researchandranking.com\/looking-for-one-multi-bagger-today-here-are-54-that-multiplied-investors-wealth\/\" class=\"ekit_global_links\" target=\"_blank\" rel=\"noopener\">\n                <!-- end link opening -->\n\n        <div class=\"elementskit-infobox text- text- icon-lef-right-aligin elementor-animation-  gradient-active  hover_from_left\">\n                        <div class=\"box-body\">\n                            <h3 class=\"elementskit-info-box-title\">\n                    5 Best Places To Live After Retirement In India                <\/h3>\n                        \t\t  \t<p>While some retired people set sail on voyages worldwide, others look forward to spending their time in relaxation and comfort.<\/p>\n                                <\/div>\n        \n        \n                <\/div>\n                <\/a>\n        <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-7e5723c\" data-id=\"7e5723c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-551526b ekit-equal-height-enable elementor-widget elementor-widget-elementskit-icon-box\" data-id=\"551526b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"elementskit-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"ekit-wid-con\" >        <!-- link opening -->\n                <a href=\"https:\/\/blog.researchandranking.com\/90-percent-lose-money-in-stocks\/\" class=\"ekit_global_links\" target=\"_blank\" rel=\"noopener\">\n                <!-- end link opening -->\n\n        <div class=\"elementskit-infobox text- text- icon-lef-right-aligin elementor-animation-  gradient-active  hover_from_left\">\n                        <div class=\"box-body\">\n                            <h3 class=\"elementskit-info-box-title\">\n                    90% People Lose Money in Stocks?                <\/h3>\n                        \t\t  \t<p>Isn't it shocking? But it is a fact. There are countless reasons why investors lose money in stock markets.<\/p>\n                                <\/div>\n        \n        \n                <\/div>\n                <\/a>\n        <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-25 elementor-inner-column elementor-element elementor-element-6dc0c61\" data-id=\"6dc0c61\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-eb5233e ekit-equal-height-enable elementor-widget elementor-widget-elementskit-icon-box\" data-id=\"eb5233e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"elementskit-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"ekit-wid-con\" >        <!-- link opening -->\n                <a href=\"https:\/\/blog.researchandranking.com\/is-long-term-investing-always-safe\/\" class=\"ekit_global_links\" target=\"_blank\" rel=\"noopener\">\n                <!-- end link opening -->\n\n        <div class=\"elementskit-infobox text- text- icon-lef-right-aligin elementor-animation-  gradient-active  hover_from_left\">\n                        <div class=\"box-body\">\n                            <h3 class=\"elementskit-info-box-title\">\n                    Is Long Term Investing Always Safe?                <\/h3>\n                        \t\t  \t<p>Let\u2019s understand what long-term means before we explain why Long Term Investing may not always be safe.<\/p>\n                                <\/div>\n        \n        \n                <\/div>\n                <\/a>\n        <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\n\n\n\n<p><strong>Create Wealth:&nbsp;<a href=\"https:\/\/www.moneycontrol.com\/news\/business\/personal-finance\/how-to-make-money-work-for-you-while-you-are-asleep-2745461.html\" target=\"_blank\" rel=\"noreferrer noopener\">Make your money work while you are asleep<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A few days back Billionaire Gautam Adani led Adani Power to announce its intention of Delisting of shares from Indian [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":2193,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[10],"tags":[],"class_list":["post-2192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/2192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=2192"}],"version-history":[{"count":1,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/2192\/revisions"}],"predecessor-version":[{"id":59778,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/2192\/revisions\/59778"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/2193"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=2192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=2192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=2192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}