Adani Enterprises sets Rs 3,111 floor price for institutional investor share sale

Adani Enterprises on Wednesday announced launch of a qualified institutional placement (QIP) offer, at a floor price of Rs 3,117 per share, a release from the company said. The company said its board, at a meeting, passed a resolution authorising the QIP issue.

It is also important to note that today i.e., on October 10, in early morning trade, the Adani Enterprise stock was trading 2.59 per cent lower at Rs 3072 for each share,a price which is lower than the QIP issue price. Further, according to the company media release, it may, at its discretion, offer a discount of not more than 5 per cent on the floor price according to a detailed report by ANI.

Brief history of Adani Enterprises

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Adani Enterprises Limited (AEL) is an Indian multinational publicly-listed holding company and a part of Adani Group. It is headquartered in Ahmedabad and primarily involved in mining and trading of coal and iron ore. Through its various subsidiaries, it also has business interests in airport operations, edible oils, road, rail and water infrastructure, data centers, and solar manufacturing, among others.

The company was incorporated in 1993 under the name Adani Exports Limited. It mainly deals with the group's integrated resources management, power trading, and natural resources businesses on a standalone basis. Its general purpose is to act as an in-house incubator for Adani Group's new businesses until they become self-sustainable.

Through its various subsidiaries, Adani Enterprises is involved in edible oils and staple foods, airport operations, solar PV manufacturing, road infrastructure, water infrastructure, data centers, agri-output storage and distribution, defence and aerospace, bunkering, shipping, rail and metro infrastructure, oil exploration, petrochemicals, mass media, green hydrogen, cement, copper, aluminium, and online services.

Details of the press release by the company

"We further wish to inform you that the 'Relevant Date' for the purpose of the Issue, in terms of Regulation 171(b) of the SEBI ICDR Regulations, is October 9, 2024 and accordingly the floor price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is Rs 3,117.4750 per Equity Share. Pursuant to Regulation 176(1) of the SEBI ICDR Regulations, the Company may, at its discretion, offer a discount of not more than 5 per cent on the floor price so calculated for the Issue" the release from the company read.

SBI Capital Markets Limited, Jefferies India Private Limited and ICICI Securities Limited have been appointed as the book-running lead managers for the Issue, the release said. Further Cantor Fitzgerald & Co. has been appointed as an advisor in connection with the issue.

Further, The Issue price will be determined by the Company in consultation with the book running lead managers.

"The Equity Shares described in this intimation have not been and will not be registered under the US Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. No public offering of securities in the United States is contemplated," the press release concluded.