Jan 19, 2023
By: Rounak Jain
Credit: Adani Enterprises
Adani Enterprises’ ₹20,000 crore follow-on public offer (FPO) will open on January 27 and close on January 31.
Credit: Adani Enterprises
The price band of the FPO is ₹3,112-3,276 per share, with each lot consisting of four shares in the retail segment.
Credit: Canva
A follow-on public offer (FPO), as the name suggests, is a follow up to the IPO. It is the issuance of new shares to the investors by a company that’s already listed on the stock exchanges.
Credit: Canva
The FPO is priced at a discount of 9.8 percent over the current market price of ₹3,451. Hence, Adani Enterprises’ shares declined over 4 percent after the company filed its red herring prospectus, on January 18.
Credit: Canva
At ₹20,000 crore, Adani Enterprises’ FPO is the largest in India, eclipsing Yes Bank’s ₹15,000 FPO which was launched in July 2020.
Credit: Canva
The company intends to use ₹10,869 crore from the FPO towards capital expenditure for its green hydrogen projects, apart from improving airport facilities and constructing a greenfield expressway.
Credit: BCCL
Adani Enterprises also said that it will use ₹4,165 crore towards debt repayment of three of its subsidiaries – Adani Airport Holdings, Adani Road Transport, and Mundra Solar.
Credit: Canva
Adani Enterprises said that it will set up three giga factories – one each to manufacture solar modules, wind turbines and hydrogen electrolysers by 2030, as part of its green hydrogen ambitions.
Credit: Canva
In its initial phase, the company aims to develop a green hydrogen production capacity of 1 million tonnes per annum before 2030.
Credit: Canva