Adani Enterprises to float Rs 20,000-crore FPO on Jan 27; allocate 50% to capex funding

The Adani Enterprises follow-on public offering will close on January 31. Bidding by anchor investors bidding will start on January 25. Retail investors may be offered a discount

The Rs 20,000-crore follow-on public issue of Adani Enterprises Ltd will open on January 27 and close on January 31, while bidding by anchor investors will start on January 25, according to the company’s red herring prospectus.

The company said shares to be issued on a partly paid basis and retail investors may be offered a discount.

Around Rs 10,869 crore out of the Rs 20,000-crore issue will be used for funding capital expenditure requirements 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.

The firm will also use Rs 4,165 crore for repayment of certain borrowings of the firm and its three arms – Adani AIrport Holdings Ltd, Adani Road Transport Ltd and Mundra Solar Ltd. As of September 2022, total debt of Adani Enterprises stood at Rs 40,023.50 crore.

Some of Adani Group’s strategic equity partners, including International Holding Company (IHC) from the UAE and other sovereign wealth funds and financial institutions, may be reportedly among the largest buyers in the issue.

As of September 2022, the company had Rs 40,023.50 crore in borrowings from banks and financial institutions comprising term loans, working capital loans and trade supplier credits, net of unamortised costs and borrowings from related parties.

ICICI Securities, Jefferies, SBI Capital Markets, Axis Capital, IDBI Capital, JM Financial, IIIFL Securities, Monarch Networth Capital and Elara Capital are the lead managers to the issue.

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