Rs 20,000-crore FPO To Increase Retail Participation In Adani Enterprises

The Rs 20,000-crore follow-on public offer (FPO) of Adani Enterprises will increase retail participation in the company’s growth story and add to wealth creation for millions of new investors, Jugeshinder Singh, CFO of the Adani Group said in a news conference today.

Singh said the Adani Enterprises incubated several highly profitable new businesses and the follow-on offer will increase the shareholders register and give an opportunity to new investors across the country to participate in India’s wealth creation story. Singh made it clear that the Adani group has no specific interest in the telecom sector on a query about acquiring spectrum in the auction last year for its captive use.

The company will use the proceeds to retire part of its debt of around Rs 4,165 crore and Rs 11,000 crore in green hydrogen business. The rest of the FPO proceeds will be used for general corporate purposes. The FPO will lead to promoter’s stake dilution by around 5 per cent taking into account today’s market valuation of Rs 3.94 trillion. The promoters own 72.6 per cent stake in the company, as per BSE India.

Among the new businesses, the company will invest in data centres, green energy and water businesses. The company is investing in water treatment, logistics and water infrastructure business, Singh said.

On its coal business, Singh said India is in the era of energy transition and not energy abandonment. “Almost 85 percent of our new investment is in the green energy business and we are in the middle of an energy transition. Even countries like Norway are investing in fossil fuels like oil and gas. We are fully committed to the energy transition,” Singh said.

Singh said most of the group businesses are generating cash and will be enough to take care of the commitments. “‘The Adani group companies enjoy the highest ratings,” Singh said. Each business is generating enough cash to take care of all commitments, he said.