Adani Enterprises Limited, India’s largest listed business incubator, confirmed that its Further Public Offer (FPO) will proceed as planned, with no changes to the schedule or the issue price. The company expressed confidence in the success of the FPO and stated that stakeholders, including bankers and investors, have full faith in the offering.
Contrary to media reports, Adani Enterprises affirmed that there were no plans to alter the FPO schedule or issue price, despite a recent drop in stock prices following a Hindenburg report. The report raised concerns about the use of offshore tax havens by the Adani Group and the substantial debt of key listed companies, putting the entire group in a precarious financial position. Seven listed companies of the conglomerate lost a combined $48 billion in market value following the publication of the report.
Foreign and Domestic Investors Participate in FPO
Despite the recent turbulence, a significant number of foreign and domestic investors participated in the FPO. Adani Enterprises allotted 18.2 million equity shares to 33 funds at a price of Rs 3,276 per share, resulting in a transaction size of Rs 5,985 crore. Foreign investors included the Abu Dhabi Investment Authority, BNP Paribas Arbitrage, Societe Generale, Goldman Sachs Investment (Mauritius) Ltd, Morgan Stanley Asia (Singapore) Pte, Nomura Singapore Ltd, and Citigroup Global Markets Mauritius.
A number of domestic institutional investors, including LIC, SBI Life Insurance Company, HDFC Life Insurance Company, and State Bank Of India Employees Pension Fund, also participated in the anchor book.
Proceeds from FPO to Fund Green Projects
Of the Rs 20,000 crore expected from the FPO, Rs 10,869 crore will be used for green hydrogen projects, work at existing airports, and construction of a greenfield expressway. An additional Rs 4,165 crore will be used to repay debt taken by subsidiaries in the airports, road, and solar project sectors.
Adani Enterprises’ Business Portfolio
Adani Enterprises’ current business portfolio encompasses a wide range of industries, including the green hydrogen ecosystem, data centers, airports, digital, mining, defense, and industrial manufacturing. The company operates in four core industry sectors: energy and utility, transportation and logistics, consumer, and primary industry.
Conclusion
Despite recent reports and stock market turbulence, Adani Enterprises confirmed that its FPO will proceed as planned, with no changes to the schedule or the issue price. The company expressed confidence in the success of the offering, with both foreign and domestic investors participating. Proceeds from the FPO will be used to fund green projects and repay debt. Adani Enterprises’ diverse business portfolio spans several core industry sectors, making it one of India’s largest listed business incubators.