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Adani Enterprises FPO

Update: ₹20,000 Cr worth Adani Enterprises FPO has been called off

Why is Adani Enterprises FPO called off?

  • Negative remarks were made in the Hindenburg report regarding the company’s debt situation.
  • Following the report, volatility increased sharply for Adani stocks.
  • Adani Enterprises’ stocks suffered a massive loss of 28.45% on February 1, 2023, traded at ₹2,128.70.
  • Adani called off the FPO in the price band of Rs 3,112-3,276 to safeguard investors’ interests.

Adani Enterprises, a part of the Adani Group, will issue FPO (or follow on public offer) to raise a fund of about ₹20,000 crores.

Adani Enterprises submitted papers with the market regulator in November 2022 to raise fresh capital funding of ₹20,000 crores (issued on a partly paid basis) through preferential allotment and retail sale of shares. It will become the largest FPO by an Indian company.

The company plans to dilute a 3.5% stake through the FPO. Currently, the promoter’s group has a 72.63% stake in the firm. Life Insurance Corporation is one of the major stakeholders of the company.

Adani Enterprises FPO will go live on January 27, 2023. The subscription window will remain available for three days until January 31, 2023. The FPO shares have a face value of ₹1. Adani Enterprises FPO price band is fixed at ₹3112 to ₹3276 per share. Retail investors will receive ₹64 discount on the price band.

Moreover, only 50% of the amount is payable at the time of the application.This means, the price band at the time of the application is Rs. 1,492 to Rs. 1,574 per FPO Equity Share and Rs. 1,556 to Rs. 1,638 per FPO Equity Share for all other Investors (Qualified Institutional Buyers, Non-Institutional Bidders and Eligible Employees). The balance of Rs 1,556 to Rs 1,638 per FPO Equity Share to be paid in one or more subsequent Call(s) as determined by Company.

As long as the shares are only partly paid up, they will not be traded alongside currently listed shares - instead they will be given a separate ISIN number. Only once they have been fully paid for will they be trade just like listed shares with their ISIN merged with the latter.

Like IPO, companies raise capital funds from the market through sales of fresh equity shares. However, FPO has certain advantages as compared to IPO. In the case of an FPO, investors have clarity over the company’s management, business practices, and growth.

Here are the details of Adani Enterprise FPO lot size:

  • Minimum lot size: 4 shares (1 lot)
  • Maximum lot size: 60 shares (15 lots)

Furthermore, the allocation of shares for different investor categories is:

  1. For Qualified Institutional Buyers or QIB, it is 50%
  2. For Retail Individual Investors or RII, it is 15%
  3. For Non-institutional Investors or NII, it is 35%

Additionally, the lead managers of this public issue. are –

  1. IDBI Capital
  2. Jefferies
  3. ICICI Securities
  4. SBI Capital
  5. Bank of Baroda Capital
  6. Elara Capital
The name of the Adani Enterprises FPO registrar will be updated soon. Click here to Apply for Adani enterprises FPO .

Opening Date

Jan 27, 2023

Closing Date

Jan 31, 2023

Price Band

₹3112 - ₹3276

per share

Issue Size

₹20,000 Crore

Face Value

₹1

per equity share

Market Lot

230 Shares

Opening Date

Jan 27, 2023

Closing Date

Jan 31, 2023

Price Band

₹3112 - ₹3276

per share

Issue Size

₹20,000 Crore

Face Value

₹1

per equity share

Market Lot

230 Shares

Listing at NSE, BSE

Adani Enterprises FPO Important Dates

Here are the important Adani Enterprises FPO dates.

FPO Event Date
Anchor Investor Bidding Date 25 January 2023
FPO Opens on 27 January 2023
FPO Closes on 31 January 2023
Basis Of Allotment
Publication Date
3 February 2023
Initiation Of Refunds 6 February 2023
Credit Of Shares To
Demat Account
7 February 2023
FPO Listing Date 8 February 2023

View all upcoming IPOs

Adani Enterprises FPO Latest News and Subscription Status Today [Live]

At 06:20:00 PM.
  • This IPO has been subscribed 1.12x by 06:20 PM on Day 3
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 1.26
    • (NII) Non-institutional buyers: 3.32
    • (RII) Retail Individual buyers: 0.12
    • Employees: 0.55
    • Total: 1.12
    At 04:12:00 PM.
  • This IPO has been subscribed 1.12x by 04:12 PM on Day 3
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 1.26
    • (NII) Non-institutional buyers: 3.32
    • (RII) Retail Individual buyers: 0.12
    • Employees: 0.54
    • Total: 1.12
    At 01:32:00 PM.
  • This IPO has been subscribed 0.43x by 01:32 PM on Day 3
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.68
    • (NII) Non-institutional buyers: 0.91
    • (RII) Retail Individual buyers: 0.08
    • Employees: 0.38
    • Total: 0.43
    At 10:32:00 AM.
  • This IPO has been subscribed 0.06x by 10:32 AM on Day 3
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.17
    • (RII) Retail Individual buyers: 0.05
    • Employees: 0.17
    • Total: 0.06
    At 05:00:00 PM.
  • This IPO has been subscribed 0.03x by 05:00 PM on Day 2
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.04
    • (RII) Retail Individual buyers: 0.04
    • Employees: 0.13
    • Total: 0.03
    At 04:32:00 PM.
  • This IPO has been subscribed 0.02x by 04:32 PM on Day 2
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.01
    • (RII) Retail Individual buyers: 0.04
    • Employees: 0.11
    • Total: 0.02
    At 01:32:00 PM.
  • This IPO has been subscribed 0.02x by 01:32 PM on Day 2
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.01
    • (RII) Retail Individual buyers: 0.03
    • Employees: 0.10
    • Total: 0.02
    At 11:11:00 AM.
  • This IPO has been subscribed 0.01x by 11:11 AM on Day 2
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.01
    • (RII) Retail Individual buyers: 0.02
    • Employees: 0.08
    • Total: 0.01
    At 05:00:00 PM.
  • This IPO has been subscribed 0.00x by 05:00 PM on Day 1
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.01
    • (RII) Retail Individual buyers: 0.02
    • Employees: 0.04
    • Total: 0.01
    At 04:00:00 PM.
  • This IPO has been subscribed 0.00x by 04:00 PM on Day 1
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.00
    • (RII) Retail Individual buyers: 0.01
    • Employees: 0.04
    • Total: 0.01
    At 01:38:00 PM.
  • This IPO has been subscribed 0.00x by 01:38 PM on Day 1
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.00
    • (RII) Retail Individual buyers: 0.01
    • Employees: 0.03
    • Total: 0.01
    At 11:11:00 AM.
  • This IPO has been subscribed 0.00x by 11:11 AM on Day 1
  • It is a public issue of 45,506,791 equity shares.
  • Status of Subscription
    • (QIB) Qualified institutional buyers: 0.00
    • (NII) Non-institutional buyers: 0.00
    • (RII) Retail Individual buyers: 0.00
    • Employees: 0.01
    • Total: 0.00

    About Adani Enterprises Ltd.

    Adani Enterprises is the flagship company of the Adani Group, primarily involved in the diversified business of coal and iron ore mining, oil and gas exploration, ports, multi-modal logistics, power generation and transmission, gas distribution, edible oil and agro commodities. Its segments include resource management, mining, solar power generation and airport.

    Adani Enterprises FPO Objectives

    • The company proposes to utilize funds to fund capital expenditure requirements of some subsidiaries in certain projects of green hydrogen ecosystem, improve work of some airport facilities, and construction of greenfield expressways.
    • Repayment in part or full of certain borrowings of the company's three subsidiaries.

    Why should you invest in the Adani Enterprises FPO?

    Here are your top two reasons to buy Adani Enterprises FPO:

    • Adani Enterprise has a diversified business, including gas and oil exploration, coal and iron ore mining, and edible oil and agro products.
    • The company earned multibagger returns for investors.
    • Its share price has already increased by 1644% in the last 5 years, including a 100% growth in the last one year alone.

    Risks

    In the 2022 fiscal year, the Adani Group had a total debt of about $20 bn. In the financial year ending in March 2022, its debt increased by 40%. This may come across as a risk for many investors. However, the management of the Adani Group are confident that this amount will not affect their operations - they have made the public assertion that no Adani Group company has ever defaulted on their debt payments and their EBITDA has grown 2x the growth of their debt.

    Financial Highlights

    Financial Year Total Asset Total revenue Profit After Tax Basic EPS
    March 2020 13,885.57 44,086.21 1,138.17 10.35
    March 2021 51642.86 40290.93 922.64 8.39
    March 2022 101760.19 70432.69 776.56 7.06

    *All amount in ₹ crore

    How to apply for Adani Enterprises FPO?

    Retail investors need to apply for the IPO using UPI.

    UPI

    • Link your bank account to a UPI ID.
    • Register your UPI id with your Demat account.
    • Subscribe for Adani Enterprises FPO and approve the payment on your UPI ID.

    Demat Account

    • If you are an existing Angel One user, Apply Now!
    • If you’re a new investor, open an Angel One Demat account for free and begin your investment journey.

    Adani Enterprises FPO Noteworthy Highlights:

    • In the quarter that ended in September 2022, Adani Enterprises' profit doubled to ₹460.94 crore from the same period last year, whereas its revenue jumped 189% to ₹38,175.23 from a year ago.
    • Adani Enterprise stocks jumped 130% from the last year's price level. The company has given 3000% returns since its listing.

    The Brand’s Pros & Cons:

    Pros Cons
    Adani Enterprises is a diversified business operating in energy and utility, transportation, logistics, consumers etc. The company’s earning potential can get impacted if it fails to maintain its growth.
    The company has demonstrated a track record of project execution and management. Some businesses of the company have limited operating history, which might impact investors’ decision-making.
    They are one of the leading companies in India in promoting and producing green energy. Some Adani Enterprises companies are involved in legal, regulatory, and other proceedings.

    Competitive Peers

    There is no listed peer to compare with.

    Adani Enterprises IPO FAQs

    What is Adani Enterprises FPO?

    Adani Enterprises will float India’s largest FPO of ₹20,000 crores on January 27, 2023. The price band is fixed at ₹3112 to ₹3276 per share.

    When is the Adani Enterprises FPO shares allotment date?

    The FPO shares will get allotted to investors’ accounts on February 3,2023.

    When is the Adani Enterprises FPO subscription opening date?

    The FPO will open on January 27, 2023.

    What is the minimum lot size of Adani Enterprises Ltd. FPO?

    The minimum lot size for retail investors is 4 equity shares.

    When will Adani Enterprises Ltd. FPO list on the exchanges?

    The listing date for Adani Enterprises Ltd. is February 08, 2023.

    What is the issue size of Adani FPO?

    Up to Rs. 20,000 crore* issued on a partly paid basis.
    * Assuming full subscription and Allotment and receipt of all Call Monies with respect to the FPO Equity Shares

    What are the UPI limits?

    UPI limits for UPI Bidder, applying through UPI only in this FPO will be restricted to Rs 2.5 Lakhs (maximum) instead of the normal limit of Rs 5.0 Lakhs.

    What is the dividend and voting rights available on partly paid up FPO Equity Shares and how does it relate to the existing Equity Shares of the Company?

    Dividends will be proportional to the paid up amount and voting rights will be proportional to the share of paid-up equity.

    What is the process of refund in case the investor is allotted a lesser number of FPO Equity Shares than applied for?

    If a bidder is allotted a lesser number of FPO Equity Shares than applied for, the excess Application Bid Amount paid/blocked shall be refunded/unblocked. The un-blocking of ASBA funds / refund of monies shall be completed be within such period as prescribed under the SEBI ICDR Regulations. In the event that there is a delay in making refunds beyond such period as prescribed under applicable law, the Company shall pay the requisite interest at such rate as prescribed under applicable law. {Please note that QIBs and Non-Institutional Bidders are not permitted to withdraw their Bid(s) or lower the size of their Bid(s) (in terms of quantity of the FPO Equity Shares or the Bid Amount) at any stage. RIBs and Eligible Employees Bidding under the Employee Reservation Portion can revise their Bid(s) during the Bid/Offer Period and withdraw or lower the size of their Bid(s) until the Bid/Offer Closing Date. Anchor Investors are not allowed to withdraw their Bids after the Anchor Investor Bidding Date.}

    What are the key differences between a fully-paid public issue and the Company’s FPO Equity Share issue?

    Fully Paid up Public Issue Company’s FPO equity shares
    Cut off not allowed for application above Rs. 2 lakhs Cut off not allowed for application above Rs. 1 lakhs
    Withdrawal for application above Rs. 2 lakhs not allowed Withdrawal for application above Rs. 1 lakhs not allowed
    Rebid for application above Rs. 2 lakhs only on upwards side Rebid for application above Rs. 1 lakhs only on upwards side
    QIB application above Rs. 2 lakhs QIB application above Rs. 1 lakhs

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