The final offer price of shares is the price at which the maximum number of shares are tendered by public shareholders. A wave of voluntary delisting proposals in the country's $1.8-trillion stock market is stoking bets on which entity will be the next to go private. Therefore, it can be said that there is evidence that companies delist for reasons such as leverage that, in fact, increases further after delisting and for the need to plough back profits. Indian scenario in this regard presents an irony, the market price which does not reflect the true worth of the company becomes the yardstick to determine the offer price at which the company buys back shares from public shareholders. The SEBI’s July 2018 Discussion Paper on Delisting Regulations has acknowledged these concerns and further pointed out that even promoters may indulge in unscrupulous behaviour by selling stakes to “friendly shareholders” who would then bid at a price level which unduly favours the promoters in the reverse book building process. –IANS. Shareholders wary of any opportunistic behaviour by the promoter may vote against the resolution, bid a higher price, or may not renounce their shares in response to such ab offer. rrb/sn/vd If accepted, the merchant banker shall announce the final price and the promoter’s acceptance. In the United States, companies registered with the Securities and Exchange Commission often choose to delist to go dark, so as to avoid regulatory compliance. Adani Power had announced for voluntary delisting last month and had already received the board of directors approval for the same. The minority shareholders bid a price nearly twice over the quoted price. The COVID-19 has created an environment of unpredictability and perturbing volatility which has adversely impacted stock trading. The opinions expressed herein are those of the author in their personal capacity and are not intended to be construed as legal, financial or investment advice. The Company has informed that after the receipt of the due diligence report from the merchant banker, the board will again meet to discuss the delisting proposal in detail. Then there are reasons such an inability to take advantage of the stock market. 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. A share may be delisted from a stock exchange voluntarily or compulsorily. Adani Power Ltd on Monday gave the final nod to its voluntarily delisting of equity shares at Rs 33.82 which is 10 per cent less than its previous closing of Rs 38 on Friday. Various reasons have been ascribed internationally. • I Power … Although the answers are to be examined on a case to case basis, it is possible to evaluate if each of these has influenced the decision to delist in India. In India, delisting is governed by SEBI (Delisting of Equity Shares) Regulations, 2009. Although the promoters are permitted to make a counteroffer, the delisting was called off by the acquirer. Kindly follow our Code of Conduct and refrain from posting any abusive, promotional or gibberish content on forum. In late March, the stock prices of the two companies were at the lowest since 2016. For frequently-traded shares, this price is fixed at either the average of the weekly high and low of the closing prices during the past 26 weeks or two weeks prior to notifying the recognised stock exchange of the aforementioned resolution, whichever is higher. MUMBAI: Investors in Adani Power are a disappointed lot as the company's board on Monday set the floor price for delisting of shares at ₹ 33.82 apiece, nearly 11% below the market price. Another important consideration for a listed company is dividend payout. Hexaware Technologies, Adani Power and Vedanta are in the process of delisting from the pandemic-marred stock markets. Consequently, a number of companies, SEBI (Delisting of Equity Shares) Regulations, 2009, Companies tend to delist during the times of economic slump based on the justification that the share price does not correctly reflect the true worth of the company. Adani Power share price gained nearly 10% today after the firm said it would consider delisting of its stock from the bourses during its board meeting scheduled on Wednesday. Announcements made in the month of May by Vedanta and Adani Power livened the debate on whether delisting the stock at a time of distress in asset markets can extend an undue advantage to the promoters. Then a floor price is fixed as per Regulation 15 of Delisting Regulations and, In 2018, Securities and Exchange Board of India enforced, like Vedanta, Adani Power and Hexaware Technologies, July 2018 Discussion Paper on Delisting Regulations, SEBI (Delisting of Equity Shares) (Second Amendment) Regulations, 2018. Further, Vedanta witnessed a significant increase in the dividend payout while Adani power declared no dividend. Regulations to the Oelisting Proposal and consequent voluntary delisting of Adani Power Ltd Adani Corporate House Shantigram. This would also be a more efficient way to go about delisting and it safeguards shareholders’ interest as well. While they have deleveraged significantly between 2017 and 2019, they also have, on average, reported net losses during the past five years. Adani Power sought shareholders nod for its Rs 3,264 crore delisting proposal through postal ballot. For example, in 2019 Linde India sought to delist its shares. Anil Sardana, managing director and CEO, Adani Transmission ltd and MD-thermal at Adani Power in a media call on Thursday said the deslisting process of Adani Power is in process. Adani Power’s Board will meet on June 3, to consider the proposal for voluntary delisting of the equity shares of the Company received from Adani Properties Private Limited, the company said. Adani Power surged 7.69percent to Rs 39.20 after the company said its board will meet on 3 June 2020 to consider a proposal to delist equity shares from the domestic stock exchanges. The Adani Group’s power arm, Adani Power has announced the appointment of Vivro Financial Services as the merchant banker to evaluate its proposal of delisting its equity shares from BSE and NSE. Shareholders willing to exercise this option must make their counter offer within two working days from the discovery of price and such price must be more than the book value of the company. Interestingly, proxy advisors recommended to shareholders that they do not tender their shares since a growth in revenue was expected. Step 1: Vedanta Limited will seek shareholders’ approval for the delisting proposal by way of a special resolution through postal ballot and e-voting (This can typically take 4-5 weeks). This goes up incrementally with the share capital. ©2019 by The Securities Blawg. Shares of Adani Power on the BSE on Friday closed at Rs 36.40, higher by 0.97 per cent from its previous close. The process of reverse book building is initiated and public shareholders may submit their bids along with shares.