Gautam Adani-led Adani Enterprises’ Rs 20,000-crore follow-on public offering (FPO) will open on January 27 and close on January 31. The targeted amount will be raised for green energy and airport expansion, the company said. According to Adani Enterprises red herring prospectus, the bidding by anchor investors will start on January 25.
The price band for the FPO has been fixed at Rs 3,112-3,276 per share, indicating a discount of 15 per cent at the lower end to 18 January’s market close. A discount of Rs 64 has also been offered to retail individual investors.
Retail investors can bid for in lot of four shares and in the multiple of four FPO equity shares thereafter.
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.
“We have, over the years, seeded new business interests for the Adani group, developed them into sizeable and self-sustaining business verticals and subsequently demerged them into independently listed and scalable platforms,” the company said. “We are setting up a green hydrogen ecosystem with an objective to incubate, build and develop an end-to-end integrated ecosystem for the manufacture of green hydrogen,” it said.
Its current business portfolio includes a green hydrogen ecosystem, data centres, developing airports, developing roads, food FMCG, digital, mining, defence and industrial manufacturing, among others.
The company is tapping industry opportunities, such as green hydrogen, the aviation sector and data centres.
The firm will also use Rs 4,165 crore for repayment of certain borrowings of the firm and its three arms – Adani Airport Holdings Ltd, Adani Road Transport Ltd and Mundra Solar Ltd. As of September 2022, total debt of Adani Enterprises stood at Rs 40,023.50 crore.
Some of Adani Group’s strategic equity partners, including International Holding Company (IHC) from the UAE and other sovereign wealth funds and financial institutions, may be reportedly among the largest buyers in the issue. ICICI Securities, Jefferies, SBI Capital Markets, Axis Capital, IDBI Capital, JM Financial, IIIFL Securities, Monarch Networth Capital and Elara Capital are the lead managers to the issue.