(PTI) Richest Indian Gautam Adani-led group's flagship firm on Wednesday offered shares at a 10-15 per cent discount in India's biggest follow-on share sale targeting to raise ₹20,000 crore for green energy and airport expansion.
Adani Enterprises Ltd (AEL) will sell shares in a price band of ₹3,112 to ₹3,276 apiece in the follow-on public offer (FPO), slated to open on January 27 and close on January 31, according to the offer letter.
The offer price is at a discount to Wednesday's ₹3,595.35 closing price of the stock on BSE.
Of the ₹20,000 crore proceeds of the FPO, ₹10,869 crore will be used for green hydrogen projects, work at the existing airports and construction of a greenfield expressway. Another ₹4,165 crore will go towards repayment of debt taken by its airports, road and solar project subsidiaries.
Adani, 60, started as a trader and has been on a rapid diversification spree, expanding an empire centred on ports and coal mining to include airports, data centres and cement as well as green energy. And AEL is the vehicle for most of the new business expansion.
AEL is India's largest listed business incubator and breeds businesses in four core industry sectors - energy and utility, transportation and logistics, consumer, and primary industry.
It will offer a ₹64 per share discount to retail investors in FPO where the bid lot has been set at four and multiple of four shares, the filing said.
"We have, over the years, seeded new business interests for the Adani group, developed them into sizeable and self-sustaining business verticals and subsequently demerged them into independently listed and scalable platforms," it said.
Its current business portfolio includes a green hydrogen ecosystem, data centres, developing airports, developing roads, food FMCG, digital, mining, defence and industrial manufacturing, among others.
The company is tapping industry opportunities, such as green hydrogen, the aviation sector and data centres.
"We are setting up a green hydrogen ecosystem with an objective to incubate, build and develop an end-to-end integrated ecosystem for the manufacture of green hydrogen," it said.
This ecosystem includes manufacturing renewable energy equipment, such as wind and solar modules to reduce the cost of renewable power, production of renewable energy and green hydrogen itself, and transformation of a part of the green hydrogen produced into derivatives, including green nitrogenous fertilisers, ammonia and urea, both for the domestic market and exports, it added.
AEL operates and manages seven operational airports across the cities of Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram, and one greenfield airport in Navi Mumbai. It is also developing infrastructure projects, such as roads in India.
It had previously announced plans to invest USD 50 billion over the next 10 years in the green hydrogen ecosystem for the production of up to 3 million tonne of green hydrogen. Also, it plans to expand its solar module manufacturing capabilities at Mundra SEZ in Gujarat to up to 10 GW per annum.
As of September 30, 2022, it had ₹40,023.50 crore in borrowings.
