Adani Enterprises slides after Q3 results

Adani Enterprises fell 4.97% to Rs 194.25 at 15:11 IST on BSE after consolidated net profit fell 4.64% to Rs 287 crore on 15.48% increase in income from operations to Rs 9938 crore in Q3 December 2017 over Q3 December 2016.

The result was announced during trading hours today, 18 January 2018.

Meanwhile, the S&P BSE Sensex was up 186.46 points, or 0.53% to 35,268.28.

On the BSE, 16.20 lakh shares were traded in the counter so far, compared with average daily volumes of 10.06 lakh shares in the past two weeks. The stock had hit a high of Rs 208 so far during the day, which is also a 52-week high for the counter. The stock had hit a low of Rs 188.80 so far during the day. The stock hit a 52-week low of Rs 77.05 on 23 January 2017.

Adani Enterprises' consolidated earnings before interest taxes depreciation and amortization (EBITDA) rose 48.65% to Rs 1048 crore in Q3 December 2017 over Q3 December 2016.

Meanwhile, the company announced during trading hours today, 18 January 2018, that its board approved the scheme of arrangement among Adani Enterprises and Adani Gas and Adani Gas Holdings. Adani Enterprises ('AEL') together with its subsidiary, Adani Gas ('AGL') and Adani Gas Holdings ('AGHL') announced a scheme of arrangement ('scheme') for demerger of the gas sourcing and distribution business of AEL into AGL and the resulting in listing of AGL on the BSE and the National Stock Exchange of India.

AGL will issue and allot 1 new equity share of Re 1 each of AGL for every 1 equity share of Re 1 each to the equity shareholders of AEL as on the record date. The scheme will simplify the business structure providing the shareholders of AEL direct shareholding in AGL, listing of the leading private sector city gas distribution business having a total portfolio of 4 cities in AGL and 9 cities authorized under 50:50 joint venture (JV) with Indian Oil Corporation.

Transaction is expected to unlock the value of gas sourcing and distribution business currently embedded in the value of AEL by eliminating holding company discount and providing financial flexibility for raising capital for sustainable growth of gas sourcing and distribution business.

Adani Enterprises is the flagship entity of the Adani Group, one of India's largest business conglomerates. Adani Enterprises is a diversified conglomerates with business interests across - coal trading and mining, renewable energy generation, agri-storage infrastructure and services as well as edible oil and gas distribution.

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