Adani Enterprises trades ex-date for spin off; rebounds 15% from day's low

The stock moved higher by 7% to Rs 161, bouncing back 15% from its early morning low of Rs 140 on the BSE on back of heavy volumes.

Shares of Adani Enterprises has moved higher by 7% to Rs 161, bouncing back 15% from its early morning low on the BSE on back of heavy volumes on Thursday. The stock of Adani group Company turned ex-date for spin off its gas sourcing and distribution business into a new company called Adani Gas.

At 11:05 am; Adani Enterprises was trading 5% higher at Rs 158 on the BSE, as compared to 0.41% rise in the S&P BSE Sensex. It touched a low of Rs 140 in early morning trade. A combined 28.65 million equity shares changed hands on the counter on the NSE and BSE so far.

Adani Enterprises has fixed September 7, 2018, as the record date for determining the entitlement of equity shareholders of Adani Enterprises for the purpose of allotment of fully paid up equity shares of Re 1 each of Adani Gas. In January, the Adani Group decided to demerge its gas sourcing and distribution business into a new company called Adani Gas.

After the issuance and allotment of the equity shares by Adani Gas, the Adani Gas will complete the necessary steps to have the equity shares listed on the BSE and National Stock Exchange of India Limited (NSE).

Adani Gas a subsidiary of Adani Enterprises, is developing City Gas Distribution (CGD) Networks to supply the Piped Natural Gas (PNG) to the Industrial, Commercial, Domestic (residential) and Compressed Natural Gas (CNG) to the transport sector.

The company has already set up city gas distribution networks in Ahmedabad and Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh. In addition, the development of Allahabad, Chandigarh, Ernakulam, Panipat, Daman, Dharwad, and Udhamsingh Nagar gas distribution is awarded to consortium of Adani Gas and Indian Oil Corporation.