Strong Response to Adani Enterprises Rights Issue
The ₹25,000-crore rights issue of Adani Enterprises (AEL), the flagship company of the Gautam Adani-led conglomerate, has received a strong response from investors. The issue, which opened for subscription on November 25, closed on December 10 with a subscription rate of 108%.
Subscription Details
As of 5 p.m. on the closing day, the offer had received bids for 14.95 crore shares against 13.85 crore shares on offer. Promoters subscribed fully to their entitlement, while the public portion was oversubscribed by 30%, drawing 4.7 crore bids against 3.6 crore shares on offer.
Issue Details
Adani Enterprises offered 138.5 million equity shares at an issue price of ₹1,800 per share, with a face value of Re 1 each. The issue is among the largest rights offerings in India, and its success is crucial given the group’s 74% promoter holding.
Payment Structure and Utilization of Proceeds
Under the payment structure, investors were required to pay ₹900 per share on application, followed by two additional calls of ₹450 each. The proceeds from the rights issue are expected to be used for infrastructure projects, including airports, data centres, green hydrogen, roads, PVC, and copper smelting capacities.
Impact on the Company
According to market experts, the rights issue will significantly expand the company’s equity base, support investments in next-generation infrastructure, and help retire part of its debt. The company will also utilise the funds for infrastructure projects in metals, mining, digital, and media ventures.
Adani Enterprises Share Price Trend
On Wednesday, Adani Enterprises share price closed nearly 1.50% lower at ₹2,211 on the BSE. The company's market capitalisation stood at more than ₹2.71 lakh crore as of the stock market close on December 10.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
- Key Takeaways:
- Adani Enterprises rights issue secured a 108% subscription rate.
- The issue will support investments in next-generation infrastructure and help retire part of the company's debt.
- The company's share price has remained weak in recent months, down 15.4% from its September highs.