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Adani Enterprises Shares Plunge 83 Percent After Demerger Move

Adani Enterprises Shares Plunge 83 Percent After Demerger Move
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Business editor, HuffPost India

Containers are unloaded from the MSC Valeria, an ultra-large containership from the Mediterranean Shipping Company S. A., of Geneva, at Adani Ports and Special Economic Zone at Mundra, some 400 Km from Ahmedabad on June 4, 2013. India's industrial output accelerated by a surprise 2.5 percent in March, its fastest pace in five months, data showed Friday, fuelling hopes that a sharp economic slowdown could be bottoming out. The economy has been struggling under the weight of high interest rates in the face of uncomfortably strong inflation and sluggish investment amid fears about graft and disappointment with the slow pace of government economic reforms. AFP PHOTO/ Sam PANTHAKY (Photo credit should read SAM PANTHAKY/AFP/Getty Images)
AFP via Getty Images
Containers are unloaded from the MSC Valeria, an ultra-large containership from the Mediterranean Shipping Company S. A., of Geneva, at Adani Ports and Special Economic Zone at Mundra, some 400 Km from Ahmedabad on June 4, 2013. India's industrial output accelerated by a surprise 2.5 percent in March, its fastest pace in five months, data showed Friday, fuelling hopes that a sharp economic slowdown could be bottoming out. The economy has been struggling under the weight of high interest rates in the face of uncomfortably strong inflation and sluggish investment amid fears about graft and disappointment with the slow pace of government economic reforms. AFP PHOTO/ Sam PANTHAKY (Photo credit should read SAM PANTHAKY/AFP/Getty Images)

Adani Enterprises Ltd. stock plunged 83 percent Wednesday, a correction that came after the company said it would de-merge its port, power and transmission businesses on Thursday.

AEL will transfer its power transmission business to newly created Adani Transmission, which will be a listed company. It will issue shares to AEL at 1:1 ratio. AEL's existing equity in Adani Ports and Special Economic Zone will be cancelled.

The stock ended the day at Rs 109.75, down 8.50 per cent on the BSE. During the day, it touched a low of Rs 107. The BSE benchmark Sensex tumbled 351.18 points to settle at 26,837.20.

“Adani Enterprises corrected after its announcement of demerger of some divisions and merging it with its subsidiaries,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.

The plan to consolidate its ports, power and mining business into three separately listed firms was first made public in January.

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This article exists as part of the online archive for HuffPost India, which closed in 2020. Some features are no longer enabled. If you have questions or concerns about this article, please contact indiasupport@huffpost.com.