Why
Avoid
CURRENT PRICE LOWER THAN OFFER PRICE
Issue Details
| Issue Opens | 27th January 2023 |
| Issue Closes | 31st January 2023 |
| Price Band | Rs. 3112 - Rs. 3276 |
| Issue size (Upper Band) | Rs. 20,000 Cr |
| Issue Type | FOLLOW ON ISSUE |
| Market cap (based on upper band) | 405000 Cr (approximate) |
| Sales- March 2022 (Rs./Crs) - Annual | 69420 |
| Net Profit - March 2022 (Rs./Crs) - Annual | 788 |
| Industry | Diversified |
| Promoters | Gautam Adani |
| Lead Manager | ICICI Securities |
The Objectives of the Offer are to:
1. Rs. 10,869 crore will be used to cover some of the subsidiaries' capital expenditure needs for (a) certain projects involving the green hydrogen ecosystem; renovations to a few current airport facilities; and building a greenfield expressway.
2. The company and three of its subsidiaries, Adani Airport Holding Limited, Adani Road Transport Limited, and Mundra Solar Limited, will use Rs. 4,165 crores to repay some borrowings, in full or in part.
3. General corporate purposes
| NAME | Number of Equity Shares | % of Equity Share Capital as of December 2022 |
|---|---|---|
| Gautam Adani and Rajesh Adani | 63,00,34,660 | 55.27% |
| Adani Tradeline Private Ltd | 9,94,91,719 | 8.73% |
| Afro Asia Trade and Investments Ltd | 3,02,49,700 | 2.65% |
| Worldwide Emerging Market Holding Ltd | 3,02,49,700 | 2.65% |
| Flourishing Trade and Investments Ltd | 3,39,37,700 | 2.98% |
| Spitze Trades and Investment Ltd | 39,86,000 | 0.35% |
Adani Enterprises Limited (AEL) is the flagship company of India's largest business organization, the Adani Group.
The company's portfolio is highly diverse, encompassing Energy & Utility, Transportation & Logistics, consumer businesses, and primary industries such as mining and industrials.
The below are a few of the many new businesses that the company has incubated:
It owns 100% of the equity in Adani New Industries Ltd (ANIL), 50% in AdaniConneX, 100% in Adani Airports Holdings Ltd, 100% in Adani Road Transport Ltd, 100% in PVC, copper, aluminum, mining services, and commercial mining, 44% in Adani Wilmar Limited (AWL), and 100% in Adani Digital Limited (ADL).
| Segment-wise Revenue: | |||
|---|---|---|---|
| Segments | Q2 FY23 | Q1 FY23 | FY22 |
| Integrated Resource Management | 77% | 75% | 69% |
| Mining | 5% | 3% | 4% |
| New Energy Ecosystem | 2% | 1% | 3% |
| Airports | 3% | 3% | 5% |
| Others | 13% | 18% | 20% |
In Q2 FY23, the company reported a revenue of Rs. 38175 crore with a net profit of Rs. 461 crore.
In Q1 FY23, the company reported a net profit of Rs. 469 crore and revenue of Rs. 40844 crore.
The company reported a gross debt of Rs. 40,024 crore in the September-22 quarter, down from Rs. 41,024 crore in the March-22 quarter.
| (Rs/cr) | Q2 FY23 | Q1 FY23 | FY22 | FY21 | FY20 |
|---|---|---|---|---|---|
| Sales | 38175 | 40844 | 69420 | 39537 | 43403 |
| Net profit | 461 | 469 | 788 | 1046 | 1040 |