InvestorQ : Is the decision to delist by Adani Power really justified for shareholders?
Crowny Pinto made post

Is the decision to delist by Adani Power really justified for shareholders?

Answer
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5 months ago


You really don’t have too many options. For the promoters, it is just a trade-off. It is tough for promoters to keep the companies listed when the market is not offering any value. This is more so when the macro conditions are such that the stock is actually available at below the book value. That makes the stock a bargain for the promoters as the benefits of going private outweigh the benefits of staying listed. In such cases, the delisting is absolutely justified as long as the existing shareholders are given a good price. Adani Power may be the start of many more such cases! Companies will stay listed and go through all the compliance hassles only if the market can offer them genuine value.