Adani Enterprises Limited FPO

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i. Adani Enterprises is one of India’s largest listed business incubators in terms of market capitalisation and are driven by the philosophy of incubating businesses in four core industry sectors – energy and utility, transportation and logistics, consumer, and primary industry.

ii. Since inception, the Adani group has incubated six decacorn businesses and successfully listed them, including by way of demergers, as Adani Ports and Special Economic Zone Limited, Adani Power Limited, Adani Transmission Limited, Adani Green Energy Limited, Adani Total Gas Limited, and Adani Wilmar Limited.

iii. Adani Enterprises’ current business portfolio includes:

i. Energy and utility
ii. Transport and logistics: as part of their airports business they manage prominent airports in India.
iii. Consumer: they manufacture, market, and brand food FMCG products.
iv. Primary industry: they offer mining services that involves contract mining, development, production-related services and other related services to mining customers primarily in the coal and iron ore industries

Competitive Strengths

i. Demonstrated track record and expertise in project execution and management
ii. Tapping on the growing green hydrogen potential in India to build a fully-integrated green hydrogen ecosystem in India
iii. Airport assets of national importance are strategically located and are supported by a stable regulatory framework and concession terms.
iv. Robust environmental, social and governance (“ESG”) focus enhancing value in a responsible way.

 

Objects of the Adani Enterprises Limited FPO:

The Company proposes to utilise the Net Proceeds towards funding of the following objects: 1. Funding capital expenditure requirements of some the Subsidiaries in relation to (a) certain projects of the green hydrogen ecosystem; (b) improvement works of certain existing airport facilities; and (c) construction of greenfield expressway. 2. Repayment, in full or part, of certain borrowings of the Company and three of the Subsidiaries, namely, Adani Airport Holding Limited, Adani Road Transport Limited, and Mundra Solar Limited> 3. General corporate purposes.    
RHP of Adani Enterprises Limited FPO

Adani Enterprises Limited FPO Details:

Open Date: Jan 27 2023
Close Date: Jan 31 2023
Total Shares: 6.10 Cr
Face Value: ₹ 1 Per Equity Share
Issue Type: Fixed Price Issue FPO
Issue Size: 20,000 Cr.
Lot Size: 4 Shares
Issue Price: ₹ 3112-3276 Per Equity Share
Listing At: NSE,BSE
Listing Date: Feb 08 2023

Promoters And Management:

i. Gautam S. Adani is one of the Promoters and the Executive Chairman of the Company. He has over three decades of business experience across various business verticals such as resources, logistics and energy. He has completed his education up to matriculation. ii. Rajesh S. Adani is one of the Promoters, the Managing Director and CEO of the Company. He has been associated with the Company since its inception. He is in charge of operations of the Adani group and has been responsible for developing its business relationships. He holds a bachelor’s degree in commerce from Gujarat University. iii, Pranav V. Adani is an Executive Director of the Company. He has been active in the Adani group since 1999. He has been instrumental in initiating and building numerous new business opportunities across multiple sectors. His understanding of the economic environment has helped the Adani group in scaling up the businesses multi fold. He has spearheaded the joint venture with the Wilmar Group of Singapore and transformed it from a single refinery edible oil business into a pan-India food company. He also leads the oil and gas, city gas distribution and agri infrastructure businesses of the Adani group. He holds a bachelor’s degree of science in business administration from Boston University, USA. He is an alumnus of the owners / president management program of the Harvard Business School, USA. He was awarded the Globoil Man of the Year in 2009.  

Financials of Adani Enterprises Limited FPO:

Particulars (in cr) Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Sales 36,533 35,924 40,379 43,403 39,537 69,420
Expenses 34,631 33,886 38,409 41,108 37,031 65,707
Operating Profit 1,902 2,038 1,969 2,294 2,506 3,714
OPM % 5% 6% 5% 5% 6% 5%
Other Income 749 363 504 872 494 1,012
Interest 1,257 1,250 1,625 1,572 1,377 2,526
Depreciation 315 664 390 472 537 1,248
Profit before tax 1,079 487 459 1,122 1,086 952
Tax % 25% 23% 32% 29% 31% 50%
Net Profit 925 594 506 1,040 1,046 788
EPS in Rs 8.98 6.89 6.52 10.35 8.39 7.06
Dividend Payout % 4% 6% 6% 10% 12% 14%
 

Comparison With Peers:

Name CMP Rs. P/E Mar Cap Rs.Cr. Div Yld % NP Qtr Rs.Cr. Qtr Profit Var % Sales Qtr Rs.Cr. Qtr Sales Var % ROCE %
Adani Enterp. 3582 338.34 408348.41 0.03 432.3 122.22 38175.23 188.81 7.28
Redington 190 10.31 14849.23 3.49 391.91 25.97 19050.74 24.62 29.26
Aegis Logistics 355.4 31.72 12474.55 1.28 101.06 -1.07 2150.52 238.54 17.37
Rain Industries 179.45 4.77 6035.78 0.56 429.44 71.18 5577.1 44.9 11.87
MMTC 35.6 17.76 5340 0 1576.71 604.59 545.48 -76.45 19.24
Hindware Home In 444 32.06 3209.89 0.11 16.25 -34.69 714.8 15.91 22.34
PTC India 100.65 6.68 2979.34 7.74 138.23 -32.36 4898.81 -10.49 9.87
 

Lead Manager of Adani Enterprises Limited FPO:

  1. Axis Capital Limited
  2. BOB Capital Markets Limited
  3. Elara Capital (India) Private Limited
  4. ICICI Securities Limited
  5. IDBI Capital Market Services Limited
  6. IIFL Securities Ltd
  7. Jefferies India Private Limited
  8. JM Financial Consultants Private Limited
  9. Monarch Networth Capital Limited
  10. SBI Capital Markets Limited

Registrar of Adani Enterprises Limited FPO:

  1. Link Intime India Private Limited

Company Address:

Adani Enterprises Limited Shantigram, Near Vaishnodevi Circle, S G Highway, Ahmedabad-382421 Phone: +91-79-26565555 Email: Website: https://www.adanienterprises.com/  

Discussion on Adani Enterprises Limited FPO:

2 Comments

    1. The shares of Adani Enterprise FPO will be listed separately with different ISIN.

    2. The payment of shares will be given 50%-25%-25%.

    3. Initially, there will be arbitrage opportunity for investors. Later on the price will align with Adani Enterprise eventually.

    4. Current GMP is 60 per share.

    5. Lot size of retail is 4*3276 = 13,104. Discount of 64 per share i.e. 256. So, total need to pay 12,848. However, upfront only 50% need to be given i.e. 6424. Another 50% will be taken in due course of time.

    Reply

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