Adani Enterprises plunges on expiry day ahead of demerger

MUMBAI: Shares of Adani Enterprises plunged over 9 per cent on the last day of May F&O series as traders booked profits after sharp rally on demerger reports.

The company has fixed June 04, as record date for the purpose of scheme of arrangement & demerger.

The stock gained 18.75 per cent in the month of May to touch 52-week high of Rs 803.95 on May 26.

The company along with its subsidiaries Adani Ports and Special Economic Zone and Adani Power had announced scheme of arrangement in January 2015.

As per the arrangement, the ports business of Adani Enterprises will be merged with power business will be transferred to Adani Power.

Meanwhile Adani Mining will be merged into Adani Enterprises.

Adani Transmissions will run power transmission business and is expected to unlock value for shareholders once its listed on the stock exchanges. Adani Transmission will issue shares in the ratio of 1:1 to Adani Enterprises shareholders.

Adani Ports will issue new equity to Adani Enterprises shareholders in the ratio of 14,123 shares for every 10,000 held. Adani Power will issue new equity in the ratio of 18,596 shares for every 10,000 held in Adani Enterprises.

According to Ashwani Gujral, traders can short Adani Enterprises with a stoploss of Rs 775 for target of Rs 740.