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  • Writer's pictureJatin Agarwal

Adani Enterprises FPO

Updated: Jan 23, 2023



About the Company and FPO Review:


Incorporated in 1993, Adani Enterprises Limited is an Indian Multinational company engaged in multifarious business ventures. The entity is the flagship company of the Adani Group.

The multinational company is primarily involved in the mining and trading of coal and iron ore. They have subsidiaries that handle business interests in airport operations, edible oils, road, rail, and water infrastructure, data centers, and solar manufacturing, defense and aerospace, integrated resource management. The Adani Group has established Adani Power, Adani Wilmar, Adani Ports & SEZ, Adani Transmission, Adani Green Energy, and Adani Total Gas.

Adani Enterprises, the flagship company of ports-to-energy conglomerate Adani Group, the company would raise Rs. 20,000 crore in follow-on public offering of new shares, which is being extolled as the country's biggest FPO. This FPO will increase the free float of the Adani stock.


The retail quota is 35%, QIB is 50%, and HNI is 15%.Further the FPO offers 10%-15% discount to the investors. The company has appointed 10 Bankers including ICICI Securities, Jefferies and SBI Capital Markets as book running lead managers to the FPO.


In November last year, Adani Enterprises' Board of Directors had approved a decision to raise funds aggregating up to Rs 20,000 crore through FPO and plans to dilute 3.5% stake through the FPO. At present, the promoter group holds 72.63% stake in the company.

From the point of view of retail investors perspective that it will be a good opportunity to buy stocks in the FPO at a discounted price (10%-15% discount to the investors), since the stock has done remarkably well in past, entering into new businesses and expanding its business at a rapid pace. In the last five years, the multibagger has gone up around 1,700%.


Key Objectives of the Issue:

  • Of Rs. 20,000 crore proceeds of the FPO, Rs. 10,869 crore will be used for green hydrogen projects, work at the existing airports and construction of a Greenfield expressway.

  • Another Rs. 4,165 crore will go towards repayment of debt taken by its airports, road and solar project subsidiaries.

  • Remaining funds are to be utilized as per management’s discretion in the near future.

  • According to a report by Bloomberg, the fundraiser would help the group deleverage and provide support to the companies' dollar bonds.

  • It is further expected to boost the group's debt ratios, stock liquidity and investor base.


Details Of FPO:

FPO Dates

Jan 27, 2023 to Jan 31, 2023

Face Value

Re. 1 per share

FPO Price Band

Rs. 3112 to Rs. 3276

FPO Lot Size

4 shares

Basis of Allotment

Feb 3, 2023

Credit of Shares in Demat account

Feb 7, 2023

Listing Date

Feb 8, 2023

Pre - Issue Shareholding

72.63%

Post - Issue Shareholding

69.13%

Retail Minimum Lot Size

4 Shares ( Rs. 13,104 )

Discount for Retail investors

Rs. 64 Per Share

Basis of Payment

50% on Application and remaining 50% on Subsequent Call(s)



CRISP Insights:

  • The stock is trading at a super premium valuation of 334(P/E).

  • As of September 30, 2022 the company had Rs. 40023.50 crores as borrowings which is stupendously high.

  • The stock has notably jumped nearly 130% in 2022 and in the last one month, however the stock price of Adani Enterprises has slipped ~15% ahead of its FPO.


Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.








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