Adani Enterprises FPO Update: The company will sell shares in the follow-on public offer (FPO) at a discount of 8.6-13.2 per cent, which is India’s biggest offer so far. Retail investors will be given an additional discount of Rs 64 per share.
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Adani Enterprises Limited F.P.O. Has been announced. The company has mentioned many things in its draft papers. Apart from its price band, the company has given all the information. In which it has also been told that according to the current share rate, how much discount the company is giving to the investors? How much extra discount are retail investors getting? When and for how long will anchor investors have the opportunity to invest? From which date and for how many days can the rest of the investors invest and where and how will the company use the money raised? Let us tell you that in terms of FPO, this will be the biggest FPO in the country so far, which is coming before the budget.
Highlights of AEL FPO
- The company will sell shares in the follow-on public offer (FPO) at a discount of 8.6-13.2 per cent, which is India’s biggest ever offer.
- Retail investors will be given an additional discount of Rs 64 per share.
- The company has fixed a price band of Rs 3,112-3,276 for the Rs 20,000 crore FPO.
- Shares of Adani Enterprises closed at Rs 3,584.90, down 1.5 per cent from its previous closing price on Wednesday.
- Adani Enterprises said in a stock exchange filing that the bidders will have to initially pay 50 per cent of the offer price and the balance amount in one or more instalments.
- Shares will be allotted to anchor investors on January 25 and for the rest the offer will be open from January 27 to 31.
- The promoter holds 72.63 per cent of the equity capital of the company.
- The public has 27.37 per cent shareholding for the quarter ending September 2022.
- Post the offer, based on Wednesday’s market cap of Rs 4.1 trillion, the promoter shareholding will fall by around 5 per cent.
Where and how will the company spend
Of the Rs 20,000 crore being raised through the offer, Rs 10,869 crore will go towards capital expenditure of its green hydrogen subsidiaries, existing airport facilities and construction of greenfield expressways. Rs 4,165 crore will be used to finance the company and its three subsidiaries – Adani Airport Holdings Limited, Adani Road Transport Limited, and Mundra Solar Limited, and the rest to repay loans.
70 billion dollars investment in energy sector
In September, billionaire Gautam Adani said his group would invest $100 billion over the next decade in sectors such as aerospace and defence, metals and petrochemicals, along with energy and digital opportunities. Out of this, 70 percent will be invested in energy transition. Adani had said that he would invest $70 billion in an integrated hydrogen-based value chain. Adani Enterprises’ revenue from operations tripled to Rs 79,019 crore, and profit nearly doubled to Rs 901 crore in the first half of FY2023. Adani Enterprises entered the benchmark Nifty 50 index in September 2022.
Sale of shares in the hands of Dan Banks
Investment Bank ICICI Securities Ltd. Jefferies India Pvt. Ltd., SBI Capital Markets Ltd., Axis Capital Ltd., BOB Capital Markets Ltd., IDBI Capital Markets & Securities Ltd., JM Financial Ltd., IIFL Securities Ltd., Monarch Networth Capital Ltd. and Elara Capital (India) Pvt. Ltd. is managing the share sale.
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