Adani Power owners to trim stake to meet free-float norms
Moneylife Digital Team 05 October 2012

As the promoters’ holding in Adani Power currently stands at 76.63% of which Adani Agro holds 3.13%, the proposed stake sale would bring promoters’ holding to 75%—in compliance with the SEBI requirement on minimum 25% free float for listed entities

 
Adani Power (APL) has intimated that Adani Agro Pvt Ltd (AAPL), part of the promoter group of APL, proposes to sell 35.58 million shares of APL (1.63% of the current shares outstanding of APL) on 8 October 2012.
 
The shares would be offered under Securities and Exchange Board of India’s (SEBI) “Offer for Sale of Shares by Promoters through the Stock Exchange Mechanism”. It further said that the shares would be sold on a separate trading window of the BSE and the floor price for the sale would be declared post the stock market close on 5 October 2012.
 
As promoters’ holding in APL currently stands at 76.63% of which AAPL holds 3.13%, the proposed stake sale would bring promoters’ holding to 75%—in compliance with the SEBI requirement on minimum 25% free float for listed entities, which has to be met by June 2013. Nomura Equity Research’s interaction with the management of APL, post the stake sale announcement, confirms the reason for the same as “need to meet free-float norms”.
 
It may be noted that the promoters’ holding in APL stood at 73.5% until 23 May 2012 when the merger of two entities (Adishree Tradelinks Pvt Ltd and Sanidhya Commodities Pvt Ltd) with APL necessitated AAPL acquiring a 3.13% holding in the APL. Post the recently approved amalgamation of Growmore Trade & Investment Pvt Ltd (Mauritius) with APL takes effect, the promoter group’s holding in APL post the proposed stake sale by AAPL would drop to 68.3%.
 
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