Adani Enterprises fixes Rs 20,000 cr FPO price band

The company said it will offer Rs 20,000 crore worth of shares in a price band of Rs 3,112 to Rs 3,276 each through a follow-on public offer (FPO).

The FPO is slated to open on 27 January 2023 and close on 31 January 2023.

The floor price is at a discount of 13.44% to Wednesday's Rs 3,595.35 closing price of the stock on BSE.

The FPO committee of the board of directors of the company, at its meeting held on 18 January 2023, approved a discount of Rs 64 per FPO equity share for retail individual investors bidding in the retail portion of the offer.

The company proposes to utilise the net proceeds to fund capital expenditure requirements for projects under its subsidiaries and repayment of borrowings. Out of the total proceeds, Rs 10,869 crore will be utilised for funding capital expenditure requirements of some subsidiaries. These include certain projects of the green hydrogen ecosystem, improvement works of existing airport facilities; and construction of greenfield expressway. And Rs 4,165 crore will go for "repayment, in full or part, of certain borrowings of our company and three of our subsidiaries, namely, Adani Airport Holdings, Adani Road Transport, and Mundra Solar," the regulatory filing said.

The Adani Enterprises board approved fund raising of upto Rs 20,000 crore through an FPO in November 2022. The company plans to dilute 3.5% stake through the FPO. Currently, the promoter group holds 72.63% stake in the company, institutions hold 20.92% and non-institutional holding is at 6.45%.

Adani Enterprises is the flagship company of Adani Group, one of India's largest business conglomerates. The company's business investments are centered on the fields of airport management, technology parks, roads, data centre and water infrastructure.

On consolidated basis, the company's net profit surged 117% to Rs 460.94 crore on 188% jump in net sales to Rs 38,175.23 crore in Q2 FY23 over Q2 FY22.

Shares of Adani Enterprises fell 3.35% to Rs 3475 on the BSE.

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