Ahead of Adani Enterprises' Rs 20,000-crore follow-on public offer (FPO), Adani Group Chairman Gautam Adani said the company's strongest growth is still ahead. He said the mega FPO is part of a 10-year capital planning cycle supported by a de-risk growth plan that is aligned with India's growth story and aligned with the group's capabilities.
In a video message as part of the FPO road show, Adani said India is on its way to become a $30-trillion economy by 2050 and that his businesses are aligned with India's ambitions of transitioning to ‘Bharat par Nirbhar’ (world dependent on India) from ‘Atmanirbhar Bharat’ (self-reliant India).
"A time when we are at our strongest with most of our growth is still ahead of us, a time when we are expanding our portfolio, both existing and emerging industries, and at a time when India is well on its path to become a $30 trillion economy by 2050," said Adani.
There could not be a better launching pad than India and no better launching pad than now as we accelerate the expansion of our portfolio, he added.
He also said that tailwinds of large demographic advantage, fiscal responsibility, strong governance and position as a responsible power points to an upcoming era of growth and stability for India.
"Our intention with the FPO is to expand our share registry with specific focus on India's retail investors," Adani said.
He said the group is focussing on ESG (environment, sustainability and governance), and they are included in the Dow Jones Sustainability Emerging Markets Index.
Adani Enterprises Ltd will sell shares in a price band of Rs 3,112 to Rs 3,276 apiece in the FPO, slated to open on January 27 and close on January 31, according to the offer letter.
The offer price is at a discount to Wednesday's Rs 3,595.35 closing price of the stock on BSE.
Of the Rs 20,000 crore proceeds of the FPO, Rs 10,869 crore will be used for green hydrogen projects, work at the existing airports and construction of a greenfield expressway. Another Rs 4,165 crore will go towards repayment of debt taken by its airports, road and solar project subsidiaries.
AEL is India's largest listed business incubator and breeds businesses in four core industry sectors - energy and utility, transportation and logistics, consumer, and primary industry.
It will offer a Rs 64 per share discount to retail investors in FPO where the bid lot has been set at four and multiple of four shares, the filing said.
With inputs from agencies
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