- Price band fixed from ₹ 3,112 to ₹ 3,276 per equity share of face value of ₹ 1 each
- Offer will close on Tuesday, January 31, 2023
- The anchor investors can place bids on January 25, 2023.
- Bids can be made for a minimum of 4 FPO Equity Shares and in multiples of 4 FPO Equity Shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, JAN 20
Ports-to-energy conglomerate Adani Group’s flagshio company, Adani Enterprises Limited (AEL), on Thursday said it would raise ₹20,000 crore in follow-on public offering (FPO) of new shares. This is the country’s first biggest FPO from any corporate.
AEL has filed papers with capital market regulator Securities and Exchange Board of India (Sebi) on Monday for the FPO. The AEL Board of Directors approved fund raising of up to ₹20,000 crore through an FPO in November 2022.
The company has fixed the floor price for the FPO equity share at ₹3,112 per share, 13 percent discount from Wednesday’s closing of ₹3,584.9 on NSE. The cap price is fixed at ₹3,276 with minimum bid lot size of four shares and in multiple thereof for all categories of investors. The FPO, a fresh issue of equity shares aggregating up to ₹20,000 crore on a partly-paid basis, will open for subscription from January 27 to 30. The anchor investors can place bids on January 25, 2023.
Answering a query in a virtual press conference on Thursday, Adani Group’s Chief Financial Officer (CFO) Jugeshinder ‘Robbie’ Singh, said. “We wanted to expand the shareholder register, to bring in new shareholders. An FPO allows us to increase the participation of the common Indian. It allows them to be a part of the wealth creation that Adani Enterprises is taking. It’s important for our founder to reach as many people as we can. The company raises capital based on the requirement of the business. We can’t make decisions based on short-term volatility aspects. We are not trying to maximise each market situation. Since 2015-16, we have raised capital based on business needs. We aim for long-term capital creation.”
Incidentally, Adani Group ranks seventh in the peer group in 2022.
The FPO comprises partly paid-up equity shares of face value of ₹ 1 each of the Company for cash at a price, including a premium, per FPO equity share by way of a fresh issue. The Offer includes a reservation of FPO equity shares aggregating up to ₹ 50 crore for subscription by eligible employees not exceeding 5% of the post-Offer paid-up equity capital.
Adani Enterprises 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 will be utilised towards general corporate purposes.
| Payment Schedule for FPO Equity Shares | ||
| At Floor Price (`) | At Cap Price (`) | |
| On Application | 1,556.00* | 1,638.00* |
| One or more subsequent call(s) | 1,556.00 | 1,638.00 |
| Total (`) | 3,112.00 | 3,276.00 |
The Book Running Lead Managers to the Offer are 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.
