The follow-on public offer (FPO) of Adani Enterprises Ltd, a subsidiary company of the Adani Group, is scheduled to open on Friday, January 27. The FPO will remain open for subscription till Tuesday, January 31.
The FPO's price band has been set at ₹3,112 to ₹3,276 per equity share. A total of 6,47,38,475 equity shares will be made available to investors through the FPO. Four FPO equity shares constitute the minimum bid lot, with subsequent bid lots being in multiples of four shares.
Retail investors who place bids under the retail portion of the offer will receive a discount of 64 rupees per FPO equity share from Adani.
From its new follow-on issue, the company hopes to raise ₹20,000 crore, and the FPO's net proceeds will be used to pay debts (in full or in part) and cover some of the company's subsidiaries' capital expenditure needs.
According to brokerage reports, the company plans to fund capital expenditure requirements of some of the subsidiaries in relation to certain projects of the green hydrogen ecosystem, improvement works of certain existing airport facilities, and construction of greenfield expressway.
Axis Capital Ltd, ICICI Securities Ltd, Jefferies India Pvt Ltd, SBI Capital Markets Ltd, BOB Capital Markets Ltd, IDBI Capital Markets & Securities Ltd, JM Financial Ltd, IIFL Securities Ltd, Monarch Networth Capital Ltd and Elara Capital (I) Pvt Ltd are the book-running lead managers of the FPO, and Link Intime India Pvt Ltd is the registrar.
On Wednesday, shares of Adani Enterprises Ltd were trading at a premium of ₹75 per share in the grey market, according to topsharebrokers.com. Its estimated listing price as per the current grey market price is ₹3,351, 2.29 percent higher.
According to a Bloomberg report, the company finalised the anchor book for the FPO on Wednesday, and the issue received 1.8–2 times as much interest. Bidders included BNP Paribas, International Holding Co PJSC, Mubadala Investment Co PJSC, and Abu Dhabi Investment Authority.
According to Dilip Davda, a Securities and Exchange Board of India (SEBI) registered research analyst, the FPO is meant for investors looking for long-term wealth creation options. He recommends subscribing to the FPO.
"The Adani group has become the darling of investors over the years and is giving a tough fight to the Ambani group in the number race. Adani Enterprises has rewarded its stakeholders handsomely and is confident of continuing the trend. Based on its current financials, the issue appears fully priced," said Davda.