Adani Enterprises' Rs 20,000-cr FPO from Jan 27-31 for capex, debt repayment

Adani Enterprises, Adani Group's flagship firm, on Wednesday has sought Rs 20,000 crore through follow-on public offer before the Union Budget on February 1, as per the prospectus issued on Wednesday. 

The FPO will open on January 27 and close on January 31. The investor bidding date has been fixed for January 25.

The firm said it will use the funds from FPO for capex requirements of some units. 

Gaudam Adani-led Adani Enterprises said it will use Rs 10,900 crore from FPO to fund green hydrogen projects, airports, expressways businesses. In its FPO prospectus, the firm said it will use the money from FPO to repay borrowings of three units, namely Adani Airport Holdings Ltd, Adani Road Transport Ltd, and Mundra Solar Ltd.

On Wednesday, the company's scrip on BSE closed 1.5% lower at Rs 3,584.90.

Adani Enterprises' prospectus did not specify a price band for the follow-on sale of shares that ends on Jan. 31.

The proposed fund raise comes as the ports-to-energy conglomerate aggressively expands into sectors such as cement and healthcare, amid some concerns about its elevated debt levels and large promoter shareholding.

The group has made acquisitions worth $13.8 billion in 2022, as per Dealogic data, its highest ever in a year and more than double the previous year.

Adani Enterprises stock jumped nearly 130% in 2022.