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.