Adani Enterprise FPO to Open on January 27: Top 10 Points

Adani Enterprise FPO to Open on January 27: Top 10 Points

Adani Enterprises, backed by the billionaire and third wealthiest person in the world, is all set to launch its FPO (Follow-on Public Offer) on January 27, 2023. Since last year, this FPO by the conglomerate has been one of the much-awaited events. The proposed upcoming FPO of ₹20,000 crore is expected to significantly impact the stock of Adani Enterprises (NSE: ADANIENT).

What is an FPO?

When a publicly listed company makes any of the following things, it is called a Follow-on Public Offer (FPO):

• Makes a fresh issue of stocks
• Issues convertible securities to the public
• Makes an offer for sale to the public

Adani Enterprises: 5 Essential Statistics

1. At press time on Monday (January 23, 2023), each Adani Enterprise stock hovers around ₹3,439. In comparison to the last session, ADANIENT is marginally down on NSE.
2. The market cap of Adani Enterprises is currently hovering around ₹3.92 trillion or ₹3,92,029.99 crore.
3. From the closing price of Adani Enterprises on Friday, today's price band of equity shares is available at a 5-10% discount.
4. Fitch Group's debt research firm CreditSights has expressed its concerns regarding the elevated debt levels of Adani Enterprises.
5. The net external of Adani Enterprises is about ₹33,517 crore.

Adani Enterprises FPO: Top 10 Points of 2022-23

The top 10 Key Points of the Adani Enterprises' FPO are:

1. Total Number of Equity Shares to be Distributed on Upcoming FPO:

   6,47,38,475 equity shares will be distributed to the investors under this Follow-on Public Offer. If you want to invest in it, you have to:

   Bid a minimum lot having a set of 4 equity shares
   Bid in multiples of 4 FPO equity shares after that

2. Floor Price and Cap Price:
   The minimum floor price of Adani Enterprises' FPO has been fixed at ₹3,112 per FPO equity share.
   The cap price of Adani Enterprises' FPO for all categories of investors is ₹3,276 FPO equity share.
    
3. Discount
   If you are a retail investor who bids under the offer’s retail portion, Adani has announced ₹64 discount for every FPO equity share.

If you are a retail investor who bids under the offer’s retail portion, Adani has announced ₹64 discount for every FPO equity share.

1. Opening of Bidding for Anchor Investors:
   The anchor investors can start bidding for Adani Enterprises’ FPO from January 25, 2023. However, retail and other investors can start bidding only from January 27, 2023. The bid will close for all kinds of investors on January 31, 2023.
2. Adani FPO’s Book-Running Lead Managers

   Book-Running Lead Managers of Adani Enterprises’ FPO are:

   ICICI Securities
   BOB Capital Markets
   Axis Capital
   Elara Capital (India)
   SBI Capital Markets
   Jefferies India
   Monarch Networth Capital
   IIFL Securities
   JM Financial
   IDBI Capital Markets and Securities
   
   Sponsor banks for the Follow-on Public Offer are:

   ICICI Bank
   Axis Bank
   
   Registrar of the FPO:

   Link Intime India

3. When will Adani’s FPO Committee meet for Equity Share Allocation?

   On January 25, 2023, the FPO committee of Adani will meet for:

   Deciding on equity share allocation to successful anchor investors
   Determining the allocation price of the anchor investor

4. Offer Price Demat Allocation, Equity Share Allotment, and Refund

   For approving the prospectus and offer price, the committee will again meet on February 1, 2023. Between February 3, 2023, and February 8, 2023, the following things will be done:

   Equity share allotment
   Demat allocation
   Listing under the offer
   Refund

5. What will Adani do with the Money Raised through this FPO?

   Adani Enterprise is expected to utilise the ₹20,000 crore fund raised through this FPO for meeting multiple goals such as:

   ₹10,869 crores is expected to be used to finance:
   Green hydrogen projects
   Construction of a greenfield expressway
   Works at the existing airports
   Pay-off requirements of capital expenditure
   Clear a portion of its huge debt of some of its units like:
   
   Adani Road Transport Ltd
   Adani Airport Holdings Ltd
   Mundra Solar Ltd

6. Dilution of just a 3.5% Stake through Upcoming FPO
   In the upcoming FPO, Adani's board of directors have approved the dilution of a 3.5% stake. The shareholding pattern of Adani Enterprises is as follows:
   
   The promoter group holds 82,79,49,621 equity shares in
   Public shareholders hold a 27.36% stake

7. Second Largest FPO of all Time

Adani's follow-on public offer of ₹20,000 crore will become the second largest if it is fully subscribed. The largest FPO till now is that of Coal India. Its follow-on public offer was ₹22,558 crore, issued in 2015. Another huge FPO launched in 2020 was that of Yes Bank, which was worth ₹15,000 crores at that time.