Home/Article/Adani Enterprises FPO Details with Share Price and Issue Size
Adani Enterprises FPO Details with Share Price and Issue Size
04 May 2023
FPO Start Date  January 27, 2023
FPO End Date  January 31, 2023
Listing Date  February 08, 2023
Face Value  ₹1 per share
Price  ₹3112 to ₹3276 per share
Lot Size  4
Issue Size  ₹20,000.00 Cr
Fresh Issue  64,738,475 shares
Retail Discount  ₹64/equity share
Issue Type  Book Built Issue
Listing at  NSE, BSE

 

The news of the upcoming FPO for Adani Enterprises has taken the world of investors with a storm. Although many investors are aware of the term FPO and how it functions, investors who have started newly might have some difficulty understanding it. In this article, we will discuss on

  1. What is FPO?
  2. Details of Adani FPO?
  3. How to take part in Adani FPO?

What is FPO?

A Follow-On Public Offer (FPO) is a public offering of securities by a company that has already been listed on a stock exchange. The FPO can be used to raise additional capital from the public, or to increase the liquidity of existing shares. The FPO can be an offering of new shares, or a repurchase of existing shares from the public. Companies often take the FPO route to raise money for expansion, acquisitions, debt repayment, or general corporate purposes. By issuing new shares, the company can gain access to additional capital without taking on additional debt or diluting existing shareholders. The FPO also provides an opportunity for the company to increase its public profile and attract new investors.

About the Adani Enterprises FPO:

Incorporated in the year 1993, , Adani Enterprises Ltd (“AEL”) the member of Adani Group, is among India’s top business houses. The company is one of India’s largest listed business incubators in terms of market capitalisation. Adani Enterprises’ current business portfolio includes- Energy and utility, Transportation and logistics, Consumer, and Primary industry. The company represents an effective complement of established and developing businesses which address the needs of India

The financials of the company for the last three financial years are given as below:

Particulars Three month period ended Sept 30, 2022 As of and for the Financial Year ended March 31
2022 2021 2020
Equity Share Capital 114 110 110 110
  Networth 36,176 26,928 18,910 18,210
  Total Borrowings 40,024 41,024 16,051 12,605
  Revenue from Operations 79,019 69,420 39,537 43,403
  EBITDA 4,100 4,726 3,259 2,968
  Profit after Tax 901 788 1,046 1,040
  Earnings per Share (diluted) 8.23 7.06 8.39 10.35
  Return on Equity (%) 5.90% 3.50% 5.40% 6.70%
  Return on Capital Employed ( %) 6.20% 9.20% 11.40% 12%
 Net Asset Value ( In ₹ per share) 317 245 172 166

all numbers stated are in crore, except share data.

*not annualized

Adani Enterprises Ltd details -

Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming FPO viz - Adani Enterprises Ltd date and its share price.

Adani Enterprises Ltd issue date -

According to the Red Herring Prospectus filed by the company, the follow-on public issue of the equity shares is going live from January 27th and will be available for subscription until January 31st, 2023.

Adani Enterprises Ltd issue size -

The total issue size of the latest Adani Enterprises Ltd is declared to be ₹20,000 crores, making it India’s biggest FPO till date. The company is offering fresh issue of 64,738,475 shares aggregating to the issue size.

50% of the offer is for QIBs (Qualified Institutional Buyers), 35% for retail investors, and the balance 15% for NIBs (Non-institutional Investors).

Adani Enterprises Ltd share price

The price band of the company’s upcoming IPO is declared to range between ₹3112 to ₹3276 per equity share

Please note:- FPO is partly paid issue, 50% of Price considered at the time of application

  At lower price At upper price
On Application ₹ 1,556 ₹ 1,638
One or More Subsequent Call(s) ₹ 1,556 ₹ 1,638

 

Category Range No of Shares Bid Price Net Bid Amount
Retail* Min 4 ₹ 1,638 ₹ 6,296
Max 60 ₹ 1,638 ₹ 94,440
HNI -1 (₹ 2 lakh - ₹ 10 lakh) Min 64 ₹ 1,638 ₹ 1,04,832
Max 304 ₹ 1,638 ₹ 4,97,952
HNI -2 (Above ₹ 10 lakh) Min 308 ₹ 1,638 ₹ 5,04,504

Adani Enterprises Ltd listing

Since the IPO of Adani Enterprises Ltd is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)

 

Adani Enterprises Ltd objectives

The net proceeds of the Issue, i.e. gross proceeds of the Issue are proposed to be utilized in the following manner:

  • Funding capital expenditure requirements of some
  • Subsidiaries  Repayment, in full or part, of certain borrowings of  Company and three of its Subsidiaries
  • General corporate purposes

Adani Enterprises Ltd Strengths

  • Demonstrated track record & expertise in project execution and management
  • One of the leading global players in integrated resource management
  • Airport assets are strategically located; supported by a stable regulatory framework and concession terms
  • Robust ESG focus enhancing value in responsible way
  • Tapping on the growing green hydrogen potential in India

Adani Enterprises Ltd India Ltd risks

  • Certain companies within group are involved in various legal, regulatory and other proceedings
  • Substantial indebtedness could adversely affect business, prospects, financial condition
  • Business is subject to extensive & evolving Indian law & regulations
  • Exposed to fluctuations in currency exchange & interest rates

Conclusion

If you wish to become a part of this exciting FPO opportunity, you will need to have an online demat and trading account, which will help you get shares of your favorite companies. To get an online DEMAT account for Free*, all you have to do is sign-up with Motilal Oswal and get started.

If you are an existing customer with Motilal Oswal, you can now invest in the IPOs in just one click through UPI payment!

It’s all easy. It’s all good.

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