Adani Enterprises’ FPO opens January 27 with share price range of Rs 3,112-3,276; stock slips ~3%

19 Jan 2023 , 10:32 AM

Adani Enterprises has announced that its upcoming follow-on public offer (FPO) will be offered at a price range of Rs3,112-3,276 per share, a significant discount of 8-13% from its closing price on Wednesday. With a total value of Rs20,000 crore, this offering represents a significant opportunity for investors to acquire a stake in the company.

The said FPO will be open for bids on January 27 and will close on January 31, as per the company’s offer documents filed with stock exchanges. This FPO represents a unique opportunity for investors to acquire a stake in the company, and the offer documents are a testament to the company’s commitment to transparency and fairness in its financial dealings.

The Adani Group’s flagship entity will use the proceeds from the share sale to reduce debt and expand. According to the offer documents, it intends to use Rs4,165 crore to repay debt and Rs10,869 crore for expansion.

The company will offer partially paid shares to retail investors at a 64% discount to the issue price. Investors must pay 50% of the offer price when submitting bids in the FPO and the remaining 50% on one or more subsequent calls as determined by the board.

Investors must bid for at least four shares and then, in multiples of four. On January 25, Adani Enterprises will sell shares to anchor investors.

In the FPO, qualified institutional buyers will receive 50% of the net offer, while non-institutional investors will receive 15%. Approximately 35% is reserved for retail investors.

At around 10.30 AM, Adani Enterprises was trading 3.16% lower at Rs3,483 per piece, against the previous close of Rs3,596.70 on NSE.

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