- Adani Enterprises Limited allocates 1,82,68,925 FPO equity shares at the upper price band of ₹ 3,276 per equity share (of which Application Bid Amount of Rs. 1,638 per FPO Equity Share is paid by the Anchor Investors)
- High quality foreign institutional investors names like Abu Dhabi Investment Authority, Maybank Asia, Goldman Sachs, Nomura, Societe Generale, Jupiter, BNP Paribas, Al Mehwar, Citi group, Morgan Stanley participated in the FPO anchor book
- Top domestic investors such as SBI Employee Pension Fund, HDFC Life, Life Insurance Corporation of India, SBI Life and other salient names like MK Ventures were also a part of the FPO anchor book
- Non-anchor offer opened Friday, January 27th, 2023 and will close Tuesday, January 31th, 2023
NE BUSINESS BUREAU
AHMEDABAD, JAN 27
Adani Enterprises Limited allotted 1,82,68,925 follow-on public offering (FPO). equity shares at the upper price band of ₹ 3,276 per FPO equity share (of which Application Bid Amount of Rs. 1,638 per FPO Equity Share is paid by the Anchor Investors) to 33 anchor investors and raised ₹ 5,985 crore ahead of the company’s proposed IPO. The healthy and diversified FPO anchor book is an indicator of company’s overall investor confidence in the strong business fundamentals of the company.
A balance amount of Rs. 1,638 per FPO Equity Share and a total balance amount of Rs. 2,992 crores for 1,82,68,925 FPO Equity Shares allotted to Anchor Investors is payable by the Anchor Investors on one or more subsequent Call(s), as determined by the Company’s Board of Directors or a committee thereof at its sole discretion, from time to time.
Maybank Securities alone subscribed for over a third of shares worth ₹ 2,040 crore. ELM Park Fund, Winro Commercial, Belgrave Investment Fund and Dovetail India Fund Class were the other big investors subscribing to shares worth over ₹ 300 crore each.
Among domestic institutions, LIC subscribed to shares worth nearly ₹ 300 crore, while SBI Life Insurance got allotment for ₹ 125 crore worth of shares and SBI Employees Pension Fund another ₹ 100 crore.
AEL is offering an additional discount of ₹ 64 per share for retail investors—those investing up to ₹ 2 lakh.
AEL’s partly paid-up shares will be traded separately on the bourses. The company will collect the remaining 50 per cent from investors in one or more tranches over an 18-month period.
The Price Band for the FPO Offer has been fixed from ₹ 3,112 to ₹ 3,276 per FPO Equity Share. Bids can be made for a minimum of 4 FPO Equity Shares and in multiples of 4 FPO Equity Shares thereafter. The FPO Offer will close on Tuesday January 31, 2023. UPI mandate end time and date shall be at 5.00 p.m. on the Bid/ Offer Closing Date.
The Retail Portion of the offer will be at a discount of ₹ 64 per FPO Equity Share for retail investors and such discount should be considered as part of the red herring prospectus dated January 18, 2023 (RHP) and should be read in conjunction with the RHP.
Adani Enterprises Ltd proposes to utilise ₹ 10,869 crore of the Net Proceeds of the FPO towards funding capital expenditure requirements of some 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 also proposes to utilise ₹` 4,165 crore to repay in full or part, certain borrowings of the Company and three of its subsidiaries, namely, Adani Airport Holding Limited, Adani Road Transport Limited, and Mundra Solar Limited. The rest amount will be utilised towards general corporate purposes.
The FPO Equity Shares offered through this Red Herring Prospectus are proposed to be listed on the Stock Exchanges.
ICICI Securities Limited, Jefferies India Private Limited, SBI Capital Markets Limited, Axis Capital Limited, BOB Capital Markets Limited, IDBI Capital Markets & Securities Limited, JM Financial Limited, IIFL Securities Limited, Monarch Networth Capital Limited and Elara Capital (India) Private Limited are “The Book Running Lead Managers” to the FPO issue.
