MUMBAI: The Rs 20,000 crore follow-on public offer (FPO) of Adani Enterprises is a chance for retail investors to be a part of wealth creation journey, said a senior official of the company.Billionaire Gautam Adani-led company aims to expand its retail investor base through this mega offer, said Jugeshinder Singh, Chief Financial Officer, Adani Group.
“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,” said Singh, addressing the press conference in Mumbai. “It’s important for our founder to reach as many people as we can,” he added.
The mega offer, in which 35 % of the shares are reserved for retail investors, will open for subscription on January 27. Adani Group has no plan to enter telecom sector but is interested in water segment, he said. “Being the largest infrastructure player, and having been there in almost the entire spectrum of this critical segment for the past two decades or so, we’re very keen on tapping the water segment by entering water purification, treatment and distribution areas,”Singh said.
He said current volatility in the stock market will not have any impact on fund raising as the company believes in long-term value creation.“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,” he said.
The conglomerate will hive-off business when they mature and are independent financially, said the official. As of September 2022, promoters held 72.63% stake in Adani Enterprises, while 27.37% was held by the public. Among public shareholders, foreign portfolio investors held 15.59 % stake.