Prakriti Deb, Pune
Adani Enterprises Ltd. (AEL) plans to demerge businesses like airports, data centres, and hydrogen between 2025 and 2028. “The businesses have to achieve a basic investment profile and maturity before being considered for a demerger. Between 2025 and 2028 we think these businesses can achieve the desired levels for a demerger”, said Jugeshinder Singh, CFO of AEL.
AEL intends to raise ₹ 20,000 crore in a follow-on share sale. It will sell shares in a price band of ₹ 3,112 to ₹ 3,276 apiece in the follow-on public offer (FPO), which will open on January 27 and close on January 31. The follow-on share sale is directed at stretching the shareholder base by bringing in high net worth, more retail, and institutional investors, Mr. Singh added. He also presented the company’s wish to increase the contribution by retail investors.
Out of the ₹ 20,000 crore FPO yield, around ₹ 4,165 crore will be spent in the repayment of debt taken by its airports, road and solar project subsidiaries. The rest will be used for green hydrogen projects, construction of a greenfield expressway and green hydrogen projects.
AEL has been instrumental in the expansions of many businesses of the Adani Group. Over the years, businesses such as ports, power and city gas were first incubated in AEL, and then were spun-off or demerged into separate listed companies. Currently its business portfolio comprises, among others, a green hydrogen ecosystem, data centres, developing airports, developing roads, food FMCG, digital, mining, defence and industrial manufacturing.
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Well written and important information.