Adani Enterprises ₹20,000 crore FPO: Price band, open date and other key facts to know

Jan 19, 2023

By: Rounak Jain

FPO dates

Adani Enterprises’ ₹20,000 crore follow-on public offer (FPO) will open on January 27 and close on January 31.

Credit: Adani-Enterprises

Price band

The price band of the FPO is ₹3,112-3,276 per share, with each lot consisting of four shares in the retail segment.

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What is an FPO?

A follow-on public offer (FPO), as the name suggests, is a follow up to the IPO. It is the issuance of new shares to the investors by a company that’s already listed on the stock exchanges.

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Adani Enterprises’ stock tumbles

The FPO is priced at a discount of 9.8 percent over the current market price of ₹3,451. Hence, Adani Enterprises’ shares declined over 4 percent after the company filed its red herring prospectus, on January 18.

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Largest FPO in India

At ₹20,000 crore, Adani Enterprises’ FPO is the largest in India, eclipsing Yes Bank’s ₹15,000 FPO which was launched in July 2020.

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Fuelling the green hydrogen ambitions of Adani

The company intends to use ₹10,869 crore from the FPO towards capital expenditure for its green hydrogen projects, apart from improving airport facilities and constructing a greenfield expressway.

Credit: BCCL

Debt reduction also on the agenda

Adani Enterprises also said that it will use ₹4,165 crore towards debt repayment of three of its subsidiaries – Adani Airport Holdings, Adani Road Transport, and Mundra Solar.

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Adani’s $50 billion green hydrogen ambitions

Adani Enterprises said that it will set up three giga factories – one each to manufacture solar modules, wind turbines and hydrogen electrolysers by 2030, as part of its green hydrogen ambitions.

Credit: Canva

Initial phase to see capacity development

In its initial phase, the company aims to develop a green hydrogen production capacity of 1 million tonnes per annum before 2030.

Credit: Canva

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