Adani Enterprises FPO: The follow-on public offer (FPO) of Adani Enterprises Ltd is going to open for subscription on Friday, 27 January, 2023. At Rs 20,000 crore, Adani Enterprises FPO would be the largest ever in the history of India.
Adani Enterprises FPO: Price Band
With the FPO price band of Rs 3,112 – 3,276 comfortably below the multibagger Nifty stock’s current market price (Rs 3442.75 on Tuesday’s close), Adani bulls are spotting an opportunity in the low free float counter. Investors applying for the FPO will have to pay 50 per cent money upfront while the rest would have to be paid in subsequent tranches. Retail shareholders will enjoy 35 per cent reservation and a discount of Rs 64 per share. After deducting the retail discount, the net bidding price for small individual investors would be Rs 1,574 with the minimum bid amount (for 4 shares) being Rs 6,296.
Adani Enterprises FPO: Objective
The management of this flagship Adani group company has already announced that net proceeds of the follow-on issue will be used for debt repayment and capital expenditure requirements of the company and its subsidiaries.
Adani Enterprises FPO: GMP
After bloodbath on Dalal Street on Wednesday session and heavy sell-off in Adani group stocks, grey market is signaling muted sentiments in regard to Adani Enterprises FPO. As per the market observers, Adani Enterprises FPO GMP (grey market premium) today is Rs 45, which is Rs 55 below its Wednesday GMP of Rs 100. They said that dip in grey market sentiment is mainly due to the trend reversal on Dalal Street as market failed to break its strong hurdle placed at 18,200 to 18,250 levels.
However, stock market experts advised investors to look at the fundamentals of the company instead of grey market mood. They said that GMP has no connect with the financials of the company as it is completely non-regulated and speculative. They told investors to scan balance sheet of the company instead of checking the Adani Enterprises FPO GMP, which keep on changing from time to time.
Adani Enterprises FPO: Share Allotment
The basis of allotment of FPO would be finalised by 3 February and shares would be credited to successful applicants’ demat accounts by 7 February. The new equity shares would be available for trading the next day on 8 February.
Adani Enterprises FPO: Should you Invest?
Girish Sodani, Head of Equity Market at Swastika Investmart said the FPO will be a good opportunity for retail investors to buy Adani Enterprises stocks at a discounted valuations since the company has done remarkably well in the past, entering into new businesses and expanding its business at a rapid pace.
“The same is shown in its results with September quarter profit more than doubling to Rs 460.94 crore while its revenues jumping 189 per cent YoY,” he said.
Giving ‘subscribe’ tag to Adani Enterprises FPO, Ashika Research — Equities says, “On financial performance front, over FY18-21, Adani Enterprises has reported a 26.5 per cent CAGR growth in topline. EBITDA margin during the period has maintained at around 5 per cent. Average RoE stood at ~5.0%, over FY18-21. Thus, we recommend our investors to Subscribe the Adani Enterprise FPO as it is a nation building group and it is foraying into sunrise sector that is green hydrogen which has immense growth opportunity.”
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