No schedule change, FPO price, confident of success: Adani Ent

Adani Enterprises Limited on Saturday clarified that the additional public offering (FPO) will proceed as per schedule and at the announced price. The company said the timeline and issue price remained unchanged. “The additional public offer (FPO) of Adani Enterprises Limited is proceeding in accordance with schedule and announced price range. There is no change in schedule or issue price.

All our stakeholders including bankers and investors have full confidence in FPO. We are very confident in the success of the FPO,” the company said. Reports in the media indicated that bankers were eyeing the schedule and issue price change as Adani shares fell after the Hindenburg Report was released. The Hindenburg Report questioned how the Adani Group used entities in offshore tax havens such as Mauritius and the Caribbean islands. It said the major listed companies had “significant debts”, which put the entire group on a “precarious financial footing”.

Seven companies included in the conglomerate have collectively lost $48 billion in market value since Hindenburg Research’s announcement on Tuesday.

The company has allocated 18.2 million equity shares to 33 funds worth Rs 3,276 each, taking the deal size to Rs 5,985 crore, according to a circular uploaded on the BSE website.

Foreign investors who bought the shares included Abu Dhabi Investment Authority, BNP Paribas Arbirage, Societe Generale, Goldman Sachs Investments (Mauritius) Limited, Morgan Stanley Asia (Singapore) Pte., Nomura Singapore Limited and Citigroup Global Markets Mauritius.

A large number of local institutional investors, including LIC, SBI Life Insurance Company, HDFC Life Insurance Company and State Bank of India Employees Fund Fund, also participated in the seminal book.

Of the Rs 20,000 crore of FPO revenue, Rs 10,869 crore will be used for green hydrogen projects, work on existing airports and construction of a green highway.

The sum of Rs 4,165 crore will be used to pay off debts taken on by airports and subsidiaries for road and solar projects.

Adani Enterprises is India’s largest listed business incubator, breeding companies in four core industry sectors – Energy & Utilities, Transport & Logistics, Consumer, and Primary Industry.

Current business portfolio includes green hydrogen ecosystem, data centres, airports, digital, mining, defense and industrial manufacturing.

(with PTI input)

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