The FPO could result in the stakes of promoters led by Gautam Adani falling by 3.5%. As of September 2022, the promoters owned 72.63% of Adani Enterprises, while the remaining 27.37% was with public shareholders. Life Insurance Corporation held 4.03% among the public shareholders, while Nomura Singapore, APMS Investment Fund, Elara India Opportunities Fund, and Lts Investment Fund owned stakes between 1% and 2%.
Adani Enterprises to launch Rs 20,000 crore FPO
Mumbai: Adani Enterprises, the flagship company of the Adani Group, filed an offer letter with stock exchanges on Monday for a proposed ₹20,000 crore follow-on public offer (FPO), said people in the know. The company is examining the possibility of launching the public issue in the last week of January, said one of the persons quoted above.
An Adani Group spokesperson did not respond to an email query.
Adani Enterprises had announced a follow-on share sale in late November.
Some bankers said Adani Enterprises could raise money in the FPO by issuing partly paid-up shares.
The company might give a discount to the retail investors in the FPO, said one of the persons in the know. The stock has rallied 94% in the last one year and 1,760% in the last five years.
The FPO could result in the stakes of promoters led by Gautam Adani falling by 3.5%. As of September 2022, the promoters owned 72.63% of Adani Enterprises, while the remaining 27.37% was with public shareholders. Life Insurance Corporation held 4.03% among the public shareholders, while Nomura Singapore, APMS Investment Fund, Elara India Opportunities Fund, and Lts Investment Fund owned stakes between 1% and 2%.
ET on January 10 reported that some of Adani Group's strategic equity partners, including International Holding Company (IHC) from UAE and other sovereign wealth funds and financial institutions, are expected to be among the largest buyers in the upcoming follow-on public issue.
The fundraising will help Adani cut debt. The group's recent breakneck expansion across sectors, aided by buyouts and by setting up new plants, have been financed through borrowings. The group's gross debt of ₹2.2 lakh crore has been a cause of concern for some in the market, but Adani, in a recent interview with India Today, countered that criticism saying the group is "financially strong" and its "profits are growing twice the rate of its debt".
Listed companies looking to raise money through FPOs can speed up the regulatory approval processes if they meet certain conditions under Sebi regulations. Such companies must apply to one or more stock exchanges to seek in-principle approval for the listing of their specified shares.
Tata Steel's FPO in January 2011 is one such example. It raised nearly ₹3,500 crore through an FPO using the fast-track route.
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