Several Indian companies are considering going private as stock valuations remain depressed and promoters seek the freedom to restructure their businesses outside the scrutiny of public shareholders and regulators.
Anil Agarwal’s Vedanta Ltd was the first off the block since the coronavirus pandemic hit India’s economy. Agarwal has offered to purchase the 49% stake held by public shareholders in the company.
Given the sharp fall in the value of their stocks, more companies could look at the option of delisting their shares in the coming months, capital market advisers said.
Adani Power Ltd and Diageo Plc-owned United Spirits Ltd are also considering going private, according to media reports. “We are seeing growing interest in delisting.