Adani Enterprises, the flagship company of the Indian conglomerate Adani Group, filed an offer letter with Indian stock exchanges on Monday for a proposed $2.44 billion (₹200 billion) follow-on public offer (FPO), The Economic Times (ET) reported, citing unnamed sources.
The company is examining the possibility of launching the public issue in the last week of January.
Adani Enterprise FPO
The Indian financial daily earlier reported that Gulf sovereign wealth funds and financial institutions, including its strategic equity partner International Holding Company (IHC), are likely to be the biggest investors in the Adani Enterprise FPO.
Abu Dhabi Investment Authority, ADQ, Qatar Investment Authority and Mubadala have been reportedly tapped for the FPO.
The ET report had said Abu Dhabi-listed IHC was planning to acquire close to 10 to 15 percent of the issue by investing between $244.5 million and $342 million (₹20 billion and ₹28 billion) making it the largest non-promoter foreign shareholder in Adani Enterprises.
The FPO move by Adani Enterprises is seen as a step towards fulfilling the ambitious expansion plans of the port to power diversified conglomerate, which has seen group stocks sizzle on the bourses in the past few years, catapulting its promoter Gautam Adani to become world’s third richest person.
Other media reports suggested that the roadshows for the FPO began in December and are continuing.
The plan is to complete the deal before March 31, 2023, but a final call on the timing of the launch would be taken based on market conditions and investor appetite.
The FPO proceeds are to be used for growth capital. Besides, Adani Enterprises being an incubator, can also buy a lot of assets under it using the FPO proceeds.
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