Adani Enterprises FPO to open on January 27 and it will reportedly raise money in the FPO by issuing partly paid-up shares.
According to sources, subscription for the Rs 20,000 crore follow-on public offer (FPO) of billionaire Gautam Adani-led Adani Enterprises would begin on January 27 and end on January 31.
The FPO’s Anchor Investor Bidding Date of January 25 has been set. The business will issue shares with partial payment.
The flagship company of the Gautam Adani-led group, an Indian billionaire, Adani Enterprises Ltd., disclosed the floor price for its follow-on public offer (FPO) on Wednesday, which aims to raise up to 20,000 crore.
The floor price for equity shares, which goes into effect on January 27, has been set by the business at Rs 3,112. For all types of investors, the cap price of the offer has been set at Rs 3,276 per share.
A discount of 64 rupees per FPO equity share has also been approved by Adani Enterprises for retail individual investors who participate in the retail phase of the offer.
A minimum bid lot of four FPO equity shares and subsequent bid lots in multiples of four FPO equity shares have also been set.
The FPO will help Adani lower its mountain of debt and support expansion by capitalising on the stock’s recent spectacular climb. A previous report said that the FPO would cause promoters led by Gautam Adani to see a 3.5% decline in their holdings.
The promoters owned 72.63% of Adani Enterprises as of September 2022, while public shareholders held the remaining 27.37%. Among the publicly traded companies, Life Insurance Corporation held 4.03% of the shares, with Nomura Singapore, APMS Investment Fund, Elara India Opportunities Fund, and Lts Investment Fund each holding 1% to 2%.
The report further states that Adani Enterprises may offer a discount to ordinary investors in this FPO. According to the report, the corporation may also be able to generate funds in the FPO by issuing partially paid-up shares.
More information has not yet been made public in an official capacity because it has only been one day since the corporation is said to have filed its paperwork for the FPO. Adani Enterprises has engaged Jefferies, ICICI Securities, SBI Capital, Bank of Baroda Capital, Elara Capital, and a few other firms as its principal bankers for the offering, the report continues.
Many experts believe that the fundraising initiative will aid the business in reducing debt. Additionally, Adani Group’s recent development across sectors with the help of buyouts and the creation of new initiatives has been financed by borrowings. It should be noted that the Adani Group has not yet made an official announcement on this development.
Despite 20,000 crore FPO buzz, Adani Ent share price declines-
The share price of Adani Enterprises was in the news on Tuesday due to speculation over a potential follow-on public offering (FPO) of Rs 20 crore. In spite of the market hype surrounding FPO, the stock opened down for a second day in a row. This Adani stock was trading at 3,597.50 per share at the time of this writing on the BSE, down 21.40 or 0.59%. Its market capitalization is now only about 4.10 lakh crore.
The stock has dropped to its day’s low of 3,560.05 per share, representing a loss of more than 1.6% from the previous session.
The flagship company of the Adani Group’s stock price has dropped 14% over the past month in anticipation of its follow-on public offer (FPO), which wants to raise up to Rs 20,000 crore.
On December 21, 2022, the stock reached a record high of Rs 4,189.55. The S&P BSE Sensex, in contrast, lost less than 1% of its value during that time.
Additionally, this would be Adani Enterprises’ stock’s second straight day of decline in the current week.
Since last year, rumours about the flagship company of the Adani Group filing an FPO have circulated. The FPO is set to be the largest ever in the nation, according to the most recent news reports.
The shares of Adani Enterprises started the current week on a negative note. The company’s stock price on the BSE ended the day on Monday at 3,619 per share, down 102.40 or 2.75%. Its market capitalization exceeded Rs. 4.12 lakh crore.
According to sources , Adani Enterprises submitted an offer letter to stock exchanges on Monday for a projected 20,000 crore follow-on public offer (FPO).
According to the source, Adani’s FPO will probably be introduced prior to the Union Budget of 2023–2024.
According to a regulatory filing on BSE on November 25, last year, the board of directors of Adani Enterprises authorised the company to raise a total of 20,000 crores through a further public offering.
The “raising of funds by way of a further public offering through a fresh issue of equity shares by the business aggregating up to 20,000 crore” was approved by the Adani Enterprises board, according to its filing.
The country’s biggest future public offer will probably be Adani’s FPO of 20,000 crore. The largest offering in this basket before was Yes Bank’s 15,000 crore fundraising through FPO in 2020.
FPOs are often referred to whenever an already listed firm issues new shares or convertible securities to the public or makes a public offer to buy its stock.
Tentative Timetable for Adani Enterprises FPO
The FPO of Adani Enterprises will be open from January 27 until January 31, 2023. From January 27, 2023, at 10:00 a.m., until January 31, 2023, at 5:00 p.m., is the Adani Ent FPO bid period. The deadline for UPI mandate confirmation is 5 p.m. on the day the issue closes.
Event Tentative Date
Opening Date – Jan 27, 2023
Closing Date – Jan 31, 2023
Basis of Allotment – Feb 3, 2023
Initiation of Refunds – Feb 6, 2023
Credit of Shares to Demat – Feb 7, 2023
Listing Date – Feb 8, 2023
What Adani Enterprises’ Rs 20,000 Crore FPO Will Mean For Its Stock And Investors
In an FPO, an already listed firm generates funds from investors by selling its stock to public shareholders, much as in an initial public offering (IPO), where a new company does the same.
Adani Enterprise first indicated its plan to use FPO to raise money in November last year. Adani Enterprises stated in a stock exchange filing dated November 25 that its board had approved raising money through a new issue of equity shares by the company totaling up to Rs 20,000 crore.
Through the FPO, the business intends to dilute its stake by 3.5%. The promoter group currently owns 72.63 percent of the corporation. ADIA and Qatar Investment Authority, two Gulf sovereign funds, have expressed interest in investing in Adani Group firms.
FPOs are typically viewed as preferable to IPOs since they give investors a better understanding of the management, operational procedures, and growth potential of the company. The company is not newly listed on the stock exchange, and investors will have historical references for its earnings report, stock market performance, and a wealth of information to rely on.
In order to encourage shareholders to increase their investments, FPO prices are often lower than market prices. A number of owners participate in the FPO to purchase shares at below-market rates and resell them to earn a premium on their transaction.
Retail investors will have a fantastic chance to purchase shares of FPO at a reduced price as the company has been rapidly developing its business and the stock has performed exceptionally well in the past, according to analysts.
Adani Enterprises’ net profit for the quarter that ended in September 2022 more than doubled to Rs 460.94 crore from Rs 212 crore for the same time the previous year.
Its operational revenue increased by 189% to Rs 38,175.23 crore from Rs 13,218 crore in the same period last year.
FAQs for Adani Enterprises
1. Adani Enterprises 20000 FPO: What is it?
A main-board FPO of equity shares with a face value of up to 20,000.00 crores is called Adani Ent FPO.
The FPO is open from January 27, 2023, until January 31, 2023. The shares are expected to list on the BSE and NSE.
2. How to apply for an Adani Ent FPO through Zerodha?
Customers of Zerodha can apply online through the Adani Ent FPO using the UPI payment method. By logging into the Zerodha Portal (back office) and submitting an IPO application form, Zerodha customers can submit an application for the Adani Ent FPO.
3. How to apply through Zerodha for Adani Ent FPO
- Log in to Console at the Zerodha website.
- Click the IPOs link under Portfolio.
- Click the “Bid” button under the “Adani Ent FPO” row to submit a bid.
- Enter the Price, Quantity, and UPI ID.
- “Submit” your IPO application.
- To approve the mandate, log into the UPI App (or BHIM or online banking).
4. When will Adani Ent FPO debut?
The Adani Ent FPO is open from January 27 through January 31, 2023.
5. How to apply for an Adani Ent FPO?
UPI or ASBA can be used as a payment option when submitting an online application to Adani Ent FPO. The ASBA IPO application is accessible through your bank account’s net banking. Brokers that don’t provide banking services offer UPI IPO applications. More information on how to apply for an IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank, and SBI Bank can be found here.
6. What is the Adani Ent FPO Allotment Date?
The FPO allocation date for Adani Enterprises is February 3, 2023.
7. What date is the FPO listing for Adani Enterprises?
The timing of Adani’s FPO listing has not yet been made public. However, the tentative date of Adani Enterprises FPO listing is February 8, 2023.