Didi Investor Lost Money in Adani Enterprises
Adani Enterprises crashed 83 per cent to an intraday low of Rs 106.35 on Wednesday as its share price was adjusted for demerger of its port, power and transmission businesses. June 4 is the record date for demerger.
Under a corporate restructuring, Adani Enterprises demerged its ports business into Adani Ports following which shareholders of Adani Enterprises will get 14.123 shares of Adani Port for every 10 share held in Adani Enterprises.
Likewise, Adani Enterprises demerged its power and transmission business; power business will be merged into Adani Power and the transmission business will be listed as a separate entity. Shareholders of Adani Enterprises will get 18.596 shares of Adani Power for every 10 shares held in Adani Enterprises.
Adani Enterprises will merge mining business- Adani Mining Private Limited (AMPL)- with itself, but no equity shares are to be issued to Adani Enterprises shareholders as AMPL is a fully owned subsidiary of Adani Enterprises .
Adani Enterprises shares, as of Wednesday, do not reflect the value of its investment in Adani Port and Adani Power. The restructured Adani Enterprises shares currently reflect the value of its coal, logistics, gas distribution and agro business only.
Let me explain you How Investor does not lost money
Mr Raj is having 10,000 shares of Adani Enterprises. Price on 2 JUne was Rs. 637 so he has invested Rs. 63,70,000.
As per the above restructuring Mr Raj will get the credit of shares of below companies and will also retain 10000 shares of Adani Enterprises.
- 14,123 Adani Ports
- 18,596 Adani Power
- 10,000 Adani transmission
So lets Calculate the price of the below shares as per yesterday closing
10,000 Adani Enterprises at Rs. 120 = Rs. 12,00,000
14,123 Adani Ports at 293 = Rs. 41,38,039
18,596 Adani Power at 34 = Rs. 6,32,264
10,000 Adani transmission at a price we don’t know yet.
The three listed firm ownership adds up to 59,70,303. If you assume Adani transmission lists at Rs. 40 or so, you will be “even” on the investment.
(Remember that stocks have fallen a lot today. If Adani were to have fallen 4%, then yesterday’s investment should have fallen to Rs. 61,20,000 or so anyhow – so the difference is even smaller).
The point here is: even if the share has fallen 80%, the amount of money you have lost will not be anywhere close – it will probably have dropped 3-4% along with the market today, that’s all.
But traders who bought in morning seeing the low price as compared to 01 June and who did not have the proper information would have lost money and SEBI should intervene here as Adani should have been traded as thats the true value after demerger 120-130 odd levels and should not have opened at 480 odd levels.
We will use our site as medium to reach out to SEBI, Spread the words to your friends so that our voice is heard.