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Adani Enterprise shares slip as firm weighs FPO to raise up to $2.4 billion

Adani Enterprise shares slip as firm weighs FPO to raise up to $2.4 billion

Adani Enterprise shares slip as firm weighs FPO to raise up to $2.4 billion
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By Nishtha Pandey  Nov 23, 2022 1:33 PM IST (Published)

According to the Bloomberg report the issue could go up to as much as $2.5 billion (₹20,000 crore). The action is thought to be a part of the company's aim to broaden its shareholder base and enhance investor credibility.

Shares of Adani Enterprise rose slightly in early trade on Wednesday but then slipped over three percent as news of the company's plans to raise capital of at least $1.8 billion in new shares, via a follow-on public offering (FPO), hit the markets. The company's board of directors will meet on November 25 in Ahmedabad, inter alia, to consider and approve the proposal for raising funds.

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The funds are being raised by way of a further public offering and preferential allotment.
This will  "... include a qualified institutions placement or through any other permissible mode and/or combination thereof as may be considered appropriate, by way of issue of equity shares or any other eligible securities... ” the firm said in a regulatory filing on Tuesday.
According to a Bloomberg report, the issue could go up to as much as $2.5 billion (₹20,000 crore). The action is thought to be a part of the company's aim to broaden its shareholder base and enhance investor credibility.
According to the most recent shareholding data made available on the BSE, the Adani family owns 72.6 percent of Adani Enterprises, with mutual funds and foreign institutional investors (FIIs) controlling the remaining 15.6 percent and 1.3 percent of the company, respectively. Adani Group has also been forraying into diversified sectors. With a $10 billion investment, Adani Group has entered the cement industry by acquiring ACC and Ambuja Cement.
According to PTI report, the company wants to enter the petrochemical industry and has plans to invest $2 billion in a 1 million ton-per-year PVC production facility as well as $1 billion in a 0.5 million ton-per-year copper smelter. A $7 to $10 billion investment would be made in the healthcare industry, including money from the Adani Foundation. This investment would go toward insurance, hospitals, diagnostic centres, and pharmaceutical companies.
The stock has returned a healthy 134 percent over the last year, and it increased by 84 percent during the last six months. The largecap stock reached its 52-week high of Rs 4,098.10 on November 16, 2022, and the Rs 1,529.55 52-week low it was seen on February 24, 2022.
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