Adani Enterprises Raises Rs 5,985 Crore From Anchor Investors Ahead Of FPO
The anchor portion received bids from 33 investors, including domestic and overseas buyers.
Adani Enterprises Ltd. allocated 1.83 crore shares under the anchor portion of its Rs 20,000-crore follow-on public offering to raise Rs 5,985 crore from 33 buyers.
The list of anchor investors included Maybank Securities, Abu Dhabi Investment Authority, Life Insurance Corp. of India, SBI Life Insurance Co., HDFC Life Insurance Co., BNP Paribas Arbitrage, Societe Generale, Goldman Sachs, Nomura, Citigroup, and Morgan Stanley, according to an exchange filing on Wednesday.
The anchor investor allocation price was the higher ceiling of the price band at Rs 3,276 per share. Of this, the buyers paid an application bid amount of Rs 1,638 per share, cumulatively standing at Rs 2,992.5 crore, which is half the funds raised from the anchor portion.
The balance amount of Rs 2,992.5 crore will have to be paid on one or more subsequent calls, as determined by the company’s board or a committee thereof from time to time, Adani Enterprises said in its filing.
The FPO committee is scheduled to meet on or around Feb. 1 for approval of the offer price and prospectus of the issue.
The FPO—biggest yet in India—will open for retail investors on Jan. 27 and continue till Jan. 30. Adani Enterprises has pegged the floor price for the issue at Rs 3,112 per share and the cap price at Rs 3,276 apiece, the RHP for the offer shows. The company is offering a discount of Rs 64 per share to retail investors.
The minimum bid lot for the FPO will be four equity shares. Buyers can bid for multiples of four equity shares thereafter.
On application, bidders will have to pay half of the offer price upfront, while the balance amount will have to be paid on one or more subsequent calls, same as the anchor portion.
Adani Enterprises said that if the offer price is lower than the anchor investor allocation price, the difference will not be returned to the anchor investors, as per SEBI regulations.
The flagship Gautam Adani firm will use the proceeds from the FPO to repay debt worth Rs 4,165 crore for itself and its units. It will utilise around Rs 10,869 crore for capital expenditure in the group's airport and green energy projects. The rest will be deployed for general corporate purposes.
On Wednesday, Adani Enterprises share closed 1.54% lower at Rs 3,389.9 apiece compared to a 1.27% decline in the Sensex.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.