Adani Enterprises FPO may get a big boost from Gulf sovereign wealth funds: Reports

According to the media reports, Adani Enterprises gears up for a follow-on public offer (FPO) to raise up to Rs 20,000 crore, some of the biggest Adani group backers from the Gulf, including its strategic equity partner International Holding Company (IHC), are likely to be among the largest buyers of the FPO. 

The reports said that conglomerates such as IHC, and the public market desks of Abu Dhabi Investment Authority, ADQ, Qatar Investment Authority and Mubadala have been tapped for the FPO, which will be the largest such issuance in India to date.

IHC is particularly looking to emerge as the single largest investor by putting in Rs 2,000 crore and Rs 2,800 crore to pick up nearly 10-15% of the issue. If it buys that much, IHC will also become the largest non-promoter foreign shareholder in Adani Enterprises.

On the stock front, Gautam Adani Group companies were under pressure on Tuesday, falling up to 5%, as the benchmark index fell over 1%. Adani Enterprises, Ambuja Cements, Adani Power, Adani Ports and Special Economic Zone (SEZ), Adani Wilmar, Adani Total Gas, ACC, Adani Green Energy and Adani Transmission fell in the range of 2%- 5% on the BSE.

Adani Enterprises' board, on November 25, had approved raising of funds by way of a further public offering (FPO) through a fresh issue of equity shares, aggregating up to Rs 20,000 crore.

Further, Adani Enterprises is also considering a discounted price for retail subscribers. At least 35% of the FPO, worth as much as Rs 7,000 crore, will need to be offered to retail investors. The FPO is expected to be launched later this month.