Adani Enterprises FPO may get a big boost from Gulf sovereign wealth funds

Adani Enterprises will need to offer at least 35 per cent of the FPO, worth as much as Rs 7,000 crore, to retail investors

As Adani Enterprises gears up for its much-awaited follow-on public offer to raise up to Rs 20,000 crore, some of the biggest Adani group backers from the Gulf, including its strategic equity partner International Holding Company (IHC), are likely to be among the largest buyers of the FPO, according to The Economic Times.

The publication, citing people aware of the matter, reported that conglomerates such as IHC, and the public market desks of Abu Dhabi Investment Authority, ADQ, Qatar Investment Authority and Mubadala have been tapped for the FPO, which will be the largest such issuance in India to date.

The stock prices of Adani Enterprises, the flagship business unit of the group owned by Asia's richest man, Gautam Adani, have seen a meteoric 18-fold jump in the past five years.

The ET report said IHC is particularly looking to emerge as the single largest investor by putting in Rs 2,000 crore and Rs 2,800 crore to pick up nearly 10-15 per cent of the issue. If it buys that much, IHC will also become the largest non-promoter foreign shareholder in Adani Enterprises.

Adani Enterprises is also considering a discounted price for retail subscribers. At least 35 per cent of the FPO, worth as much as Rs 7,000 crore, will need to be offered to retail investors.

The FPO is expected to be launched later this month. 

ET said Adani declined to comment on its report and emails sent to IHC remained unanswered.

As of September 2022, the promoters own 72.63 per cent of Adani Enterprises while the remaining 27.37 per cent is with public shareholders. The FPO will lead to a marginal 3.5 per cent dilution for the promoters.
 

Listed in 1994, Adani Enterprises has presence capex-heavy infrastructure businesses — airports, ports, mining, agriculture, data centres, defence, cement, agriculture and warehousing.