Adani Enterprises FPO opens today

Adani Enterprises follow-on public offer (FPO) is going to hit primary markets today. It will remain open for bidding till 31st January 2023. The flagship Adani group company aims to raise Rs 20,000 crore from its follow-on offer and the company has already made it clear that net proceeds of the FPO will be used for debt repayment and capital expenditure of Adani Enterprises Ltd and its subsidiary companies.

The company has fixed Adani Enterprises FPO price band at Rs 3,112 to Rs 3,276 per equity share whereas Adani Enterprises share price today is Rs 3,405. So, the FPO is available at a discounted price of around 5 per cent.

Further, the company has raised Rs 5,984.9 crore from 33 institutional investors, including Maybank Securities, Life Insurance Corp. of India, SBI Employees Pension Fund, SBI Life Insurance, HDFC Life Insurance, Abu Dhabi Investment Authority, Goldman Sachs Investment, and Morgan Stanley Asia. The investors bid for the anchor portion of Adani’s Rs 20,000 crore follow-on public offering.

As per media reports, the anchor portion of the FPO, which will open for retail investors later this week, was oversubscribed around 1.5 times.

The FPO committee of the Adani Enterprises board, in consultation with the investment bankers, have finalized the allocation of 18.27 million shares to anchor investors at Rs 3,276 apiece, Adani Enterprises said in the stock exchanges. Anchor investors have paid half of Rs 5,984.9 crore raised, or Rs 1,638 per share comprising around Rs 2,992.45 crore, with the balance Rs 1,638 per share to be paid at one or more calls by the company board. There will be a lock-in of 90 days on 50% of the FPO shares allotted to anchor investors from the date of allotment and an additional 30 days for the remaining 50% from the allotment date, it added.