Indian billionaire Gautam Adani-led group’s flagship firm, Adani Enterprises Ltd, on Wednesday announced the floor price for its follow-on public offer (FPO) to raise up to ₹20,000 crore by selling shares in a business that has almost doubled in market value over the past year.
The company has decided on a floor price of ₹3,112 per equity share, which opens on 27 January. The cap price of the offer has been fixed at ₹3,276 per share for all categories of investors.
Adani Enterprises has also approved a discount of ₹64 per share in the FPO for retail investors bidding in the retail portion of the offer.
It has also fixed “a minimum bid lot of four FPO equity shares and in the multiples of four FPO equity shares thereafter”.
Anchor investors can bid on 25 January and the rest on 27 to 31 January.
The massive share sale would help the billionaire to meet multiple goals. The company will use the fund for capital expenditure requirements and pay off some debt of its units — Adani Airport Holdings Ltd, Adani Road Transport Ltd, and Mundra Solar Ltd.
Of the ₹20,000 crore proceeds of the FPO, ₹10,869 crore will be used for green hydrogen projects, work at the existing airports and construction of a greenfield expressway.
FPO is an additional share sale offer while an IPO or initial public offering is the first sale of shares of a company.
Shares of Adani Enterprises Ltd settled 1.20% lower at ₹3,595.35 apiece on the BSE on Wednesday. The company’s shares have surged 95% over the past year to ₹3,596.7. The stock is trading at a valuation of over 141 times its one-year forward earnings.
By comparison, Reliance Industries – the country’s largest firm by market value – is at about 20 times, data compiled by Bloomberg shows.
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