Adani Enterprises Limited to demerge its renewable energy business

Adani Enterprises Limited (AEL) has announced plans to demerge its renewable energy business into its associate company, Adani Green Energy Limited (AGEL), to simplify the overall business structure of the company. The boards of the two companies have approved the demerger scheme and AGEL will be listed on the Bombay Stock Exchange and the National Stock Exchange. According to a company statement, AGEL has planned to issue 761 new equity shares for every 1,000 equity shares of AEL and the existing equity shares held by AEL in AGEL will be cancelled. However, all shareholders of AEL will be provided direct shareholding in AGEL. The demerger is expected to be closed by the first quarter of 2018 depending on the regulatory approvals.