The Adani Enterprise, a flagship of the Adani Group is expected to start the documentation process with the Securities Exchange Board Of India (SEBI) to file for an FPO (Follow-on public offer) worth rupees 20,000 crores. This FPO is likely to be the largest, succeeding the Yes Bank FPO that raised 15,000 crores in the year 2020. Sources have also stated that the offer will be up for public issue by the end of January.
This move by the Adani group is expected to cut the debts and execute a series of growth plans to diversify in different sectors, mainly focusing on investing 50 billion dollars in green hydrogen and around 23 billion dollars in green energy in the next 5 to 7 years. Other sectors in which the Adani Enterprise plan to invest include transportation, data centres, and petrochemicals as well.
To raise funds for the FPO, the company plans on utilising partly paid shares, and the retail participants will be offered discounts to get the issue. The Adani Enterprise is also planning to dilute 3.5% of the 75 percent stake that the promoters hold. This FPO launch will skyrocket the already propelling Adani Enterprise.
With no official statement released by the group in the public domain, the board of directors approved the issue in the month of November 2022 with a decided face value of each share to be Rs.1. The major anticipated participant and potential buyer will be the International Holding Company. The Gulf Sovereign Funds, like the Qatar Investment Authority and the Abu Dhabi Investment Authority, are also expected to show interest in this major FPO by the Adanis.
