No change in schedule, issue price of FPO, confident of success: Adani Ent

Adani Enterprises Limited clarified on Saturday that its Further Public Offer (FPO) will go according to the schedule and at the announced price-band. The company said that the schedule and issue price remain unchanged. “Adani Enterprises Limited’s Further Public Offer (FPO) is going as per schedule and the announced price-band. There is no change in either the schedule or the issue price.

All our stakeholders including bankers and investors have full faith in the FPO. We are extremely confident about the success of the FPO”, said the company. Reports in media suggested that the bankers were looking to get the schedule and the issue price changed as the Adani stocks nosedived after the Hindenburg report came out. The Hindenburg report questioned how the Adani Group used entities in offshore tax havens such as Mauritius and the Caribbean islands. It said key listed Adani companies had “substantial debt”, which put the entire group on a “precarious financial footing”.

Seven listed companies of the conglomerate lost a combined $48 billion in market value since Hindenburg Research on Tuesday came out.

The company allotted 18.2 million equity shares to 33 funds at Rs 3,276 apiece, taking the transaction size to Rs 5,985 crore, according to a circular uploaded on the BSE website.

Foreign investors who picked up the shares included 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 slew 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.

Out of the Rs 20,000-crore proceeds from the FPO, Rs 10,869 crore will be used for green hydrogen projects, work at the existing airports and construction of a greenfield expressway.

An amount of Rs 4,165 crore will be utilised for repayment of debt taken by its airports, road and solar project subsidiaries.

Adani Enterprises is India’s largest listed business incubator and breeds businesses in four core industry sectors — energy and utility, transportation and logistics, consumer, and primary industry.

The current business portfolio includes green hydrogen ecosystem, data centres, airports, digital, mining, defence and industrial manufacturing.

(With PTI inputs)