Adani Enterprises fixes FPO floor price at Rs 20,000 cr
Adani Enterprises has submitted a red herring prospectus with the markets regulator SEBI for Rs 20,000-crore follow-on public offer (FPO).
The floor price for the FPO equity share fixed by the company is Rs 3,112 per share, 13% discount from Wednesday’s closing of Rs 3,584.9 on NSE. The cap price is fixed at Rs 3,276 with minimum bid lot size of four shares and in multiple thereof for all categories of investors. The FPO, a fresh issue of equity shares aggregating upto ₹20,000 crore on a partly-paid basis, will open for subscription from January 27 to 30. The anchor investors can place bids on January 25, 2023.
As per news source, the FPO will offer opportunity to retail investors who may look to gain from the recent rally observed in Adani stocks. The company has offered discount of Rs 64 per share for retail individual investors.
The company will utilize the fund in capital expenditure requirements for projects under its subsidiaries and repayment of borrowings. Out of the fund proceeds, Rs 10,869 crore will be used 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. Rs 4,165 crore will be utilized 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 AEL Board of Directors approved fund raising of upto ₹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%.
The issue has 10 lead managers, including ICICI Securities, Jefferies India, SBI Capital Markets, Axis Capital, BOB Capital Markets, IDBI Capital Markets JM Financial, IIFL Securities, Monarch Networth and Elara Capital. The Registrar to the offer is Link Intime India.
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