AEL to demerge renewable business into AGEL
Raghav Bisani / 09 Oct 2017
AEL to demerge renewable business into AGEL
Adani Enterprises Limited (AEL) is set to demerge its renewable business into Adani Green Energy Limited (AGEL). The company preferred demerger on grounds of “simplifying the business structure, eliminating control of holding company and providing for financial flexibility for future growth”.
The resulting company (AGEL) will be the largest renewable power producer in India with a portfolio of 2148 MW. The demerger process is expected to be completed by Q1FY18 and the new company will be listed on the BSE and NSE.
Pre-demerger, AEL was the ultimate controller of its renewable business. Post-demerger, shareholders of AEL will have control over AGEL as the scheme states that all the shares of resulting company (AGEL) shall be issued to the shareholders of AEL. As per the arrangement, 761 shares of AGEL will be issued to every shareholder holding 1000 shares in the parent company (AEL).
Considering the financials of its renewable business, the annual turnover in FY16-17 was Rs. 815.64 crore, which is 9.49% of total turnover of company on a standalone basis. The share was trading at Rs 119 intra-day, down by 3.6%.
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