Adani Enterprises' further public offer (FPO) Committee of the board of directors of the company on Wednesday approved Rs 20,000 crore FPO. The company will use the proceeds from the FPO to repay debts and fund capital expenditure requirements.
The FPO of Adani Enterprises is expected to open on January 27 and close on January 31, according to the offer letter.
The company will use Rs 10,869 crore from the country's biggest FPO to fund green hydrogen projects, airports facilities and greenfield expressways, billionaire Gautam Adani-led firm said in its prospectus.
Adani Enterprises will use Rs 4,165 crore to repay borrowings of Adani Airport Holdings, Adani Road Transport, and Mundra Solar.
The fund raising comes as the Adani Group aggressively expands into sectors such as cement and healthcare, amid some concerns about its elevated debt levels and large promoter shareholding.
The company has fixed price band of Rs 3,112-3,276 per share in the upcoming FPO for all categories of investors and also offered discount of Rs 64 per FPO share to retail individual investors bidding for shares in the retail portion of the offer.
Retail investors can bid for in lot of four shares and in the multiple of 4 FPO equity shares thereafter.
At the upper end of the price band one lot of Adani Enterprises shares in the FPO will cost Rs 13,104.
Adani Enterprises share in the FPO comes at a discount of nearly 9 per cent from its Wednesday's closing price of Rs 3,595.35 when compared to the upper end price band.
Adani Enterprises operates and manages seven operational airports across the cities of Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram, and one greenfield airport in Navi Mumbai. It is also developing infrastructure projects such as roads in India.