Adani FPO to fund green and digital biz
Swaraj Singh Dhanjal & Deborshi Chaki end of the fiscal if market conditions are conducive. Otherwise, this will get done in Q1 of next fiscal,” he added.
The FPO plan also aligns with the group’s recent efforts to diversify its funding sources. Mint reported on November 7 that Adani Enterprises plans to raise as much as ₹2,000 crore through a maiden retail bond sale by December.
Promoters currently hold 72% of Adani Enterprises, while public shareholding stands at 27.37%.
“An FPO makes more sense to them because they are also looking to improve the float. Compared to FPO, a qualified institutional placement (QIP) or a private placement would mean bringing in large institutional investors who would hold on to the stock for a longer term, while FPO will also bring in a wider set of investors such as high net worth individuals and retail investors into the stock, improving the float and price discovery of the stock,” the first person added. FPOS also allow a free pricing mechanism as compared to QIP or private placement, which have a fixed formula to price the stock based on historical stock prices, he said.
An email sent to an Adani group spokesperson remained unanswered.