Adani Enterprises files for ₹20,000 crore follow-on public offer
18 Jan 2023
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Business Standard - Richest Indian Gautam Adani-led group's flagship firm on Wednesday filed an offer letter with stock exchanges for a proposed ₹20,000 crore follow-on public offer (FPO). The FPO of Adani Enterprises Ltd (AEL) is planned to open on January 27 and close on January 31st, according to the offer letter. Read more
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. The company is tapping industry opportunities, such as green hydrogen, the aviation sector and data centers.
Its current business portfolio includes a green hydrogen ecosystem, data centers, developing airports, developing roads, food FMCG, digital, mining, defence and industrial manufacturing, among others.
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.
Adani Enterprises, the flagship company of ports-to-energy conglomerate Adani Group, said it would raise ₹20,000 crore in follow-on public offering of new shares, which is being touted as the country's biggest FPO. The Adani Group's flagship company has filed papers with capital market regulator Securities and Exchange Board of India (Sebi) on Monday for the FPO.
FPO (Follow on Public Offer) is a process by which a company, which is already listed on an exchange, issues new shares to the investors or the existing shareholders, usually the promoters. FPO is used by companies to diversify their equity base.
The FPO is raise basically for two major purposes:
1) To reduce the debt which is existing in a company
2) To raise additional capital for a company
Adani Enterprises Limited on Wednesday said that the price band for the Rs 20,000-crore follow-on public offer (FPO) will be at Rs 3,112-3,276/share. At the lower end of the price band, the shares are being offered at a discount of 13.5% to the current market price.
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