Shares of Adani Enterprises plunged 2% to day lows of Rs 3,091.40 on NSE after the flagship company of the Adani conglomerate announced the launch of its qualified institutional placement (QIP) on Wednesday, October 9, following approvals from its board and shareholders. The QIP is aimed at raising Rs 4,200 crore, as per the media report.
QIP Details of Adani Enterprises
The QIP is being offered at an indicative price of Rs 2,962 per share, representing a 6.08% discount to the recent closing price of Adani Enterprises shares and a 5% discount to the SEBI-prescribed floor price.
In a meeting held on October 9, the QIP Committee authorized the issuance process, setting a floor price of Rs 3,117.48 per share. Under SEBI regulations, the company reserves the right to offer a discount of up to 5% on this floor price.
The committee also approved the preliminary placement document and the accompanying application form for investors.
Lead Managers and Advisors
SBI Capital Markets Limited, Jefferies India Private Limited, and ICICI Securities Limited have been appointed as the book-running lead managers (BRLMs) for the issue. Cantor Fitzgerald & Co has also been brought in as an advisor to assist with the QIP.
Previous Fundraising Efforts and Market Context
Adani Enterprises had previously planned to raise Rs 20,000 crore through India’s largest-ever Follow-on Public Offer (FPO) in 2023. The FPO was priced in the range of Rs 3,112 to Rs 3,276 per share and received full subscription.
However, the company was forced to call off the FPO following the release of a critical report by Hindenburg Research, which led to a significant correction in the stock price.
With Adani Enterprises shelving its FPO, Vodafone Idea’s recent Rs 18,000 crore fundraising now stands as the largest FPO in Indian history.
Stock Performance in Last One Year
In terms of stock performance, Adani Enterprises faced a mixed bag of results. In the last month, the stock tried to secure positive returns at 3.62%, showcasing a modest upward movement. Contrastingly, the past six months were challenging, with the stock experiencing negative returns of 4.55%, indicating a period of decline.
Year-to-date figures says that Adani Enterprises shares have given positive returns of 8.62%. However, over the last twelve months, the stock managed to maintain positive returns of 23.87%, highlighting its resilience in the longer term.
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