Adani Power shares close 9% higher on delisting plan

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. Share price of Adani Power rose 9.89% to Rs 40 intra day against previous close of Rs 36.40 on BSE.     

Market cap of the firm rose to Rs 15,254 crore. The stock has gained 9.71% in two days. The stock opened with a gain of 9.89% at Rs 40 today. It closed 8.65% higher at Rs 39.55 on BSE.

The stock stands higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages. It has lost 21% in one year and fallen 36% since the beginning of this year. 

However, the stock has gained 25% in one month. "Meeting of board of directors of Adani Power to be held on June 3, 2020 to consider the proposal for voluntary delisting of the equity shares of the company received from Adani Properties and related matters incidental thereto," Adani Power said in a regulatory filing last week.

In the delisting proposal letter, Adani Properties, promoter of Adani Power, expressed its intention to buy all equity shares of the company held by public shareholders. Each share has a face value of Rs 10.

The delisting proposal will enhance the company's operational, financial and strategic flexibility regarding corporate restructurings, acquisitions and exploring new financing structures, Adani Power added.