A proposal of 20,000 crore rupees, India’s biggest-ever follow-on public offering (FPO), was filed by the Indian conglomerate Adani Enterprises with the Securities and Exchange Board of India (SEBI) on Monday, according to insider sources in communication with the Economic Times. The flagship organization of the Adani group is seeking to launch the public issue by the last week of January before the announcement of the Union Budget 2023-24, the source further adds. A new landmark will be set by the proposed FPO as it overtakes the current highest-ever FPO held by Yes Bank, with the funds likely being issued through partly paid-up shares.
The flagship company of the Adani Group is expected to provide retailers with a discount in the FPO, as the stock surged 94 percent in the previous year and 1,760 percent in the last five years. According to the report, JM Financial, ICICI Securities, SBI Capital, Bank of Baroda Capital, Elara Capital, etc. have been designated as bankers for the issue by Adani Enterprises. The recent developments could reduce the stakes of Gautam Adani and associated promoters by 3.5 percent.
Adani Enterprises was incorporated as Adani Exports Limited in 1993 and its scope as a separate entity includes power trading, integrated resources management, and natural resources businesses.
The company, via its subsidiaries, is involved in data centers, road infrastructure, water infrastructure, staple foods, edible oils, defence and aerospace, mass media, cement, petrochemicals, rail, and metro infrastructure, among others.