Ahmedabad, Sep 17: The promoters of Adani Power Ltd have withdrawn its delisting offer citing a delay due to non-receipt of in-principle approval from the Stock Exchanges thereby losing the commercial viability of the voluntary delisting offer.
In an exchange filing on Saturday, the company stated that it had received a letter from a member of the promoter group seeking withdrawal of delisting offer.
In May 2020, the Board of Directors of APL had approved the voluntary delisting offer from a member of the promoter group, a private entity - Adani Properties Private Ltd (APPL) to acquire company's equity shares (each having face value of ₹10) held by the public shareholders, who hold 96,53,26,374 equity shares which is 25.03 per cent of the total paid-up equity share capital.
The promoter group collectively holds 2,89,16,12,567 equity shares of APL which is 74.97 per of the total paid-up equity share capital. The Delisting Offer was approved by company's shareholders on July 23, 2020. Post the shareholders' approval, the company had submitted necessary delisting applications to National Stock Exchange and Bombay Stock Exchange on January 29, 2021 to obtain in-principle approval for the Delisting Offer.
The floor price for delisting was fixed at ₹33.82 per share, a discount of 12 per cent from the prevailing price of ₹38.20 share. The APL shares, however have witnessed a rally over the past two years to hit a high of ₹432.80 on August 22, 2022. The shares closed the last trading session at ₹387.80 on BSE Friday.
In its latest filing on September 17, 2022, the company stated that it "has not yet received in principle approval of the Stock Exchanges, for the Delisting Offer. Due to non-receipt of in-principle approval of the Stock Exchanges, the company and APPL are unable to proceed forward with the Delisting Offer."
Also, the company noted that it has caused a "substantial and significant delay in proceeding forward with the Delisting Offer" and that it has impacted the commercial viability of the voluntary delisting process.
"Accordingly, we hereby request the Board of Directors of the Company to take note of our Delisting Withdrawal Proposal and take necessary steps to give effect to the same," the Delisting Withdrawal Letter from the promoters read.
"Pursuant to the receipt of the Delisting Withdrawal Letter, the Company shall be taking necessary steps including inter alia noting and taking on record the Delisting Withdrawal Letter by the Board of Directors of the Company," the company said.