Adani Enterprises’ Rs 20,000-crore follow-on public offering (FPO) is set open on January 27. The price band for the FPO has been fixed at Rs 3,112-3,276 per share. As of January 25, Adani Enterprises’ share price is Rs 3,441 apiece on NSE. This indicates a potential discount of nearly 5 per cent for buyers.
According to Adani Enterprises, the targeted amount will be raised for green energy and airport expansion. Bidding for anchor investors started on January 25. Retail investors can bid for in a lot of four shares and in the multiple of four FPO equity shares thereafter.
Adani Enterprises FPO Objective
Around Rs 10,869 crore out of the Rs 20,000-crore issue will be used for funding capital expenditure requirements of its subsidiaries in relation to certain projects of the green hydrogen ecosystem, improvement works of certain existing airport facilities, and construction of greenfield expressway.
Adani Enterprises has also said that net proceeds from the FPO will be utilized for capital expenditure requirements of some of the subsidiaries of the company and repayment of (fully or partially) debts.
Adani Enterprises FPO GMP
The grey market is indicating subdued emotions regarding Adani Enterprises FPO following the bloodbath on Dalal Street on Wednesday and the severe sell-off in Adani group equities, according to a LiveMint report.
As per the market observers, Adani Enterprises FPO GMP (grey market premium) today is Rs 45, Rs 55 below its Wednesday GMP of Rs 100. On Wednesday, the news portal had reported that the grey market has gone highly bullish on the fresh follow-on offer of Adani Enterprises.
Now as per the report, the dip in grey market sentiment is mainly due to the trend reversal on Dalal Street.
Stock market analysts cautioned investors, however, to focus on the company’s fundamentals rather than the state of the market. They claimed that because GMP is entirely unregulated and speculative, it has no connection to the company’s financials. Investors were advised to look at the company’s balance sheet rather than the Adani Enterprises FPO GMP, which is constantly changing.
Adani Enterprises FPO Price
Adani Enterprises Ltd is offering fresh issues at a price band of Rs 3112 to Rs 3276 per share. The follow-on offering will open on January 27, 2023, and it will remain open till January 31, 2023.
What Analysts Say
According to Ashika Research — Equities as reported by LiveMint, “On financial performance front, over FY18-21, Adani Enterprises has reported a 26.5 per cent CAGR growth in topline. EBITDA margin during the period has maintained at around 5 per cent. Average RoE stood at ~5.0%, over FY18-21. Thus, we recommend our investors to Subscribe the Adani Enterprise FPO as it is a nation building group and it is foraying into sunrise sector that is green hydrogen which has immense growth opportunity.”
According to Dilip Davda, a Securities and Exchange Board of India (SEBI) registered research analyst, “The Adani group has become the darling of investors over the years and is giving a tough fight to the Ambani group in the number race. Adani Enterprises has rewarded its stakeholders handsomely and is confident of continuing the trend. Based on its current financials, the issue appears fully priced.”
Adani Enterprises