Adani Group hives off power, port units to unlock shareholder value
NEW DELHI: Adani Enterprises, the $9.4-billion infrastructurecentred conglomerate, on Friday announced a major restructuring exercise under which its ports and power businesses will be spun off into two listed subsidiaries. A new power transmission company will also be separately listed, as the Ahmedabad-based giant controlled by billionaire Gautam Adani seeks to simplify its corporate structure and reduce debt.
Shares of Adani Enterprises, the corporate entity founded just 27 years ago, soared to their year-long highs ahead of the announcement as investors welcomed the move, which will not only reduce the `58,000crore debt currently on Adani Enterprises books, but will also give its shareholders a chance to participate in the growth of one of the largest power transmission companies in India.
The Adani Enterprises stock closed 7.5% up at `630 on the BSE on Friday, after climbing to a high of `646, on a day when the broader market lost about 500 points.
“The scheme of arrangement will simplify corporate structure and is a decisive step towards unlocking the potential of the Adani Group,” said chairman Gautam Adani. “It will drive the next level of value creation and would accelerate the business growth. These developments and the positive macro-economic environment reaffirm our commitment towards securing infrastructure and the energy needs of the country.”
>>CONTINUED ON P19 Spinning off Adani Enterprises Ltd’s (AEL’s) Port Undertaking into Adani Ports and Special Economic Zone (APSEZ)
Port Undertaking owns the Belekeri Port and AEL’s investments in APSEZ
Adani Ports to issue 141,23 shares for every 10,000 shares of AEL
Demerger of Transmission Undertaking into Adani Transmission, which will be listed Transmission Undertaking contains the Mundra-Zedra line and AEL investments 1 Adani Transmission share for 1 AEL share