NEW DELHI: To fund his ambitious capex plans and repay a part of the debt pile, billionaire Gautam Adani’s flagship company Adani Enterprises NSE-1.86% is launching its follow- on public immolation or FPO from this Friday. At Rs20,000 crore, Adani Enterprises FPO would be the largest ever in the history of India.
With the FPO price band of Rs3,112 –3,276 comfortably below the multibagger Nifty stock’s current request price (Rs3442.75 on Tuesday’s close), Adani bulls are spotting an occasion in the low free pier counter.
Having given a graveness- defying return of over 1,600% in the last 5 times, the Adani stock has doubled in the last one time period and entered the exclusive Nifty50 club of stocks on September 30 last time.
About Adani Enterprises FPO
1) The FPO, which opens for subscription from January 27 and ends on January 31, is a fresh issue of 61,474,751 equity shares on an incompletely paid basis.
2) Shares would be allotted through a 100% book structure process with a price band of Rs3,112 –3,276. Investors have to bid in multiples of 4 shares.
3) Investors applying for the FPO will have to pay 50% money outspoken while the rest would have to be paid in posterior tranches. Retail shareholders will enjoy 35% reservation and a reduction of Rs 64 per share. After abating the retail reduction, the net bidding price for small individual investors would be Rs1,574 with the minimal shot quantum (for 4 shares) being Rs6,296.
4) Half of the FPO is reserved for good institutional buyers (QIP) including anchor investors. HNIs, on the other hand, have a reservation of 15. A small reservation of Rs 50 crore worth of shares have been kept for company workers.
5) The basis of allotment of FPO would be finalised by 3 February and shares would be credited to successful aspirants’ demat accounts by 7 February. The new equity shares would be available for trading the coming day on 8 February.
6) Adani Enterprises said it’s raising finances to meet capital expenditure conditions (Rs10,869 crore) for systems in the green hydrogen ecosystem, enhancement workshop of certain living field installations and construction of greenfield thruway. The remaining quantum would be used to repay debt for Adani Airport effects, Adani Road Transport, and Mundra Solar and for general commercial purposes.
7) The stock, despite its sky- soaring trip, finds no content from major brokerages. Ahead of the FPO, Ventura Securities brought out a note saying Adani Enterprises shares can rally up to Rs5,999 in 24 months.” Over the period of FY22- 25E, we’re awaiting AEL’s profit/ EBITDA/ net profit to grow at a CAGR of 16.9%/89.8%/128.1% to INR 1,10,822cr/ INR 25,373 cr/ INR 9,220 cr independently,” the brokerage said.
8) Ashika Stock Broking has issued a subscribe standing note on the FPO while praising Adani’s incursion into the daylight sector of green hydrogen which has immense growth occasion.
9) Adani Enterprises FPO is the largest in India, bigger than YES Bank NSE-2.20’%s Rs15,000 crore FPO brought out in 2020. Other big FPOs in the once include those of ICICI Bank NSE-1.69% (Rs10,044 crore in 2007) and Power Grid NSE-0.70’%s two FPOs in 2010 and 2013 (Rs3721.17 and Rs 5321.31crore).
10) FPOs are different from offer for trade (OFS) as the former involves fresh issue of shares while the ultimate is used by the protagonist to discharge stake.