Goutam Adani set to create a new stock market record, Yes Bank’s record is about to be beaten!
Adani Enterprises Ltd, owned by Asia’s richest businessman, Gautam Adani, has approved the raising of up to Rs 20,000 crore through a follow-on public offering. The company said in a filing that it would seek shareholder approval for the sale of shares by mail-in vote. If Adani Enterprises is able to raise the entire Rs 20,000 crore, the share sale will be the largest FPO in the country to date.
Currently, the record is held by Yes Bank, which raised Rs 15,000 crore through an FPO in July 2020. Funds raised from the FPO will help the group’s green and digital businesses and provide much of the equity needed for its plans. expansion over the next 3 to 5 years. Investment bank ICICI Securities and Jefferies have begun work on offering documents for the FPO.
In September, Gautam Adani said his group would invest $100 billion over the next decade in sectors including energy transition, digital, aerospace and defense, metals and petrochemicals. Of this amount, 70% was allocated to energy transfers. Adani, detailing his group’s plans, said it had pledged to invest $70 billion in an integrated chain of hydrogen-powered sites. Briefing the media, an Adani official said that Adani Enterprises has drawn up a master plan of a 3-5 year plan to raise funds.
Under the current plan, 80-90% of its equity requirements will be supported for the term. Adani Group’s business generates a consolidated EBITDA of approximately Rs 30,000 crore, of which Rs 13,000 crore is used to service the group’s debt. The remaining Rs 17,000 crore is used to fund growth. Adani Enterprises will, over time, build businesses such as airports, data centers, green hydrogen, and road projects. According to Adani officials, each of these entities generates free cash flow.
The group recently organized roadshows in major cities to explain its business to investors. The healthcare sector is, for now, a not-for-profit business The group’s airport business recorded positive cash flow during the quarter. Adani Airports will upgrade and operate six airports namely Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram under a tender launched by the Airports Authority of India.
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