Failed buybacks turn bonanza for investors

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Editor's note: Last Saturday, Adani Power notified stock exchanges of its intention to withdraw its application to delist from the stock markets. Its shareholders had approved the move to delist back in June 2020. The company submitted its application to the exchanges for their approval in January 2021. But the exchanges did not give the company the go-ahead to voluntarily delist. Adani Power cites this (and the delay) as a reason for withdrawing its application. Adani Power had mooted the decision to delist in May 2020, when its shares had plunged, in line with the broader market that had fallen sharply since March in the wake of the pandemic. With as much as 50% of its value shaved off, the company announced a buyback of its stock from investors at a floor price of Rs 33.82 a share, a discount to the then prevailing market price of Rs 38. The shares now trade at close to Rs 400. A surge in Adani Power shares happened soon after the open offer was announced, with the price rising 200% in the next 12 months …