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Business News/ Companies / News/  Adani looks to enter in water segment, to launch 20,000 cr FPO next Friday
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Adani looks to enter in water segment, to launch ₹20,000 cr FPO next Friday

The massive share sale via FPO would is expected to support the Group to meet multiple goals.
  • If the FPO is fully subscribed, then Adani's ₹20,000 crore offer will become the second largest follow-on public offer in India after Coal India's ₹22,558 crore issue in 2015.
  • Adani Group's flagship company is set to launch the second largest follow-on public offer (FPO) in India next week. (Bloomberg)Premium
    Adani Group's flagship company is set to launch the second largest follow-on public offer (FPO) in India next week. (Bloomberg)

    Adani Enterprises is likely looking to enter the water segment by tapping water purification, treatment, and distribution areas as this is seen as a key element for its core business of infrastructure. The Adani Group's flagship company which is set to launch the second largest follow-on public offer (FPO) in India next week, has a diverse business portfolio across ports, airports, roads, expressways power generation, and distribution, among others.

    The group's chief financial officer Jugeshinder Singh while addressing media in Milan said Adani Enterprises has fixed the price band for the 20,000-crore FPI in the range of 3,112-3,276 per equity share.

    He added, "Being the largest infrastructure player, and having been there in almost the entire spectrum of this critical segment for the past two decades or so, we're very keen on tapping the water segment by entering water purification, treatment, and distribution areas," as reported by PTI.

    Singh stated that as the company does a lot of project/company incubations this will also be part of its incubation project. However, he also said, nothing has been fixed yet, adding that the company is currently studying the scope and opportunities, and also looking at possible joint venture projects/acquisition targets.

    He also said that the company is very keen on this segment as water is a core element in any infrastructure segment.

    On Wednesday, Adani Enterprises announced the floor price of its FPO to raise to 20,000 crore. The company fixed a price band of 3,112 to 3,276 per share. The company has also announced a discount of 64 per share for retail investors in the FPO.

    For the FPO, bidding will be allowed to anchor investors on 25 January and the rest from 27 to 31 January.

    The massive share sale would is expected to support the Group to meet multiple goals. Notably, Adani will use the fund for capital expenditure requirements and pay off some debt of its units -- Adani Airport Holdings Ltd, Adani Road Transport Ltd, and Mundra Solar Ltd.

    From the total 20,000 crore proceeds of the FPO, the company plans to utilise 10,869 crore for green hydrogen projects, work at the existing airports, and construction of a greenfield expressway.

    If the FPO is fully subscribed, then Adani's 20,000 crore offer will become the second largest follow-on public offer in India after Coal India's 22,558 crore issue in 2015. Earlier in 2020, Yes Bank had launched a 15,000 crore FPO.

    On BSE, Adani Ent shares ended at 3,461.60 apiece down by 3.72%.

    (With inputs from PTI)

     

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    Published: 19 Jan 2023, 08:43 PM IST
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