By Siddhant Mishra
The Adani group on Wednesday filed its red herring prospectus with the regulator for a follow-on public offer (FPO) to raise ₹20,000 crore.
The offer will remain open for subscription from January 27 to 31, and will comprise a fresh issue of shares of face value ₹1 each, on a partly paid basis. Further, the date for bidding by anchor investors has been set for January 25, says the RHP.
The company has set the floor price of the offer at ₹3,112 per share, and the cap price at ₹3,276 a share for all categories of investors, it said in a separate filing to the BSE. The board also approved a discount of ₹64 per share for retail investors. The minimum bid lot will be of four shares (in multiples of four shares thereafter).
ICICI Securities, Jefferies India, SBI Capital Markets, Axis Capital, BOB Capital Markets, JM Financial, IDBI Capital Markets & Securities, IIFL Securities, Monarch Networth Capital, and Elara Capital (India) are the lead managers to the issue, according to the RHP.
Shares aggregating up to ₹50 crore are reserved for bidding by eligible employees, not exceeding 5% of the post-offer paid-up equity share capital. Not less than 35% of the shares are reserved for retail investors.
Shares will be allotted to demat accounts of the allottees by February 7, and they can be traded from February 8.
In the RHP, the company has said it plans to use the proceeds to meet capital expenditure requirements, repay debt owed by the company and three subsidiaries — Adani Airport Holding, Adani Road Transport, and Mundra Solar — and general corporate purposes.
The capex requirements pertain to projects in the green hydrogen ecosystem, improvement in certain airport facilities, and construction of the Greenfield expressway.
As of the September quarter, the company had recorded ₹22,137 crore in revenue, ₹469.2 crore in net profit, and an EPS of 4.11. The promoter holding as of September-end was 72.63%, according to BSE data.
The Adani Enterprises stock slipped to ₹3,584, down 1.5% on Wednesday. It commands a market capitalisation of ₹4.09 trillion.