MUMBAI: The Rs 20,000 crore follow-on public offer (FPO) of Adani Enterprises will open for subscription on January 27 and will close on January 31. Billionaire Gautam Adani led the company on Wednesday and announced Rs 3,112-Rs 3,276 price band for the country’s biggest FPO.
The company, one of India’s largest listed business incubators in terms of market capitalisation, will use the proceeds from the FPO to repay debts and to meet its capital expenditure requirements, said the company in its Red Herring Prospectus.
Of the Rs 20,000 crore proceeds of the FPO, Rs 10,869 crore will be used for green hydrogen projects, work at the existing airports and construction of a greenfield expressway. Another Rs 4,165 crore will go towards repayment of debt taken by its airports, road and solar project subsidiaries.
“As of September 30, 2022, we had Rs 40,023.50 crore in borrowings from banks and financial institutions, comprising term loans (including foreign currency borrowings), working capital loans and trade/supplier credits, net of unamortised costs and borrowings from related parties,” said the company in its prospectus.
“We propose to utilise an amount of Rs 4,165 crore from the Net Proceeds towards repayment of borrowings of our company three of our subsidiaries, namely, Adani Airport Holdings Limited, Adani Road Transport Limited, and Mundra Solar Limited,” it added.
The company has announced a discount of Rs 64 per share in the FPO for retail investors bidding in the retail portion of the offer, said the company in a filing to the BSE. Under the FPO, the employee quota for Adani Enterprises has been fixed at 5%, retail at 35% and the non-institutional quota has been fixed at 15%. The company will issue fresh shares on a partly-paid basis under a 100% book-built offer.
The minimum bid lot for the FPO will be four equity shares and investors can bid for multiples of four equity shares thereafter.
As of December 31, 2022, the Adani group had a market capitalisation of Rs 18,402 billion and is one of the largest listed groups by market capitalisation in India. Shares of Adani Enterprises ended 1.2% on Wednesday to close at Rs 3,595 on the BSE on Wednesday.