(Partly Paid) Adani Enterprises Limited

About Adani Enterprises FPO  Adani Enterprises Limited (AEL) is the flagship company of the Adani Group. It is one of the largest listed business incubators that help other businesses and startups to develop their business. Since its inception, it has incubated six decacorn businesses and successfully listed them viz. Adani Power, Adani Green Energy, Adani Transmission, Adani Ports and SEZ, Adani Wilmar, and Adani Total Gas.  These companies primarily operate in four core sectors - energy and utility, transportation, consumer products and primary industry such as mining. It aims to invest during the growth stage, help businesses grow and eventually demerge its various diversified subsidiaries.  Adani Enterprises is planning to launch a follow-on public offering (FPO). An FPO is a type of public offering in which a company already listed offers additional shares to the public, usually to raise additional capital. The company plans to raise ₹20,000 crore through FPO.  The main objective of FPO is to fund the capex requirement of some of its subsidiaries and fund projects related to the green hydrogen ecosystem, construction of greenfield expressway, and improvement works of certain existing airport facilities. The investment in these areas is expected to be ₹10,869 crore.  Also, part of the raised fund i.e. ₹4,165 crore, will be used towards repayment of existing borrowings of three of its subsidiaries. Finally, the balance amount would be used for general corporate purposes.  Here are some key details about the Adani Enterprises FPO:     Company Name  Adani Enterprises Limited   Company Type  Listed entity    Company Established On  1988   Adani Enterprises FPO Opening Date  27 January, 2023    Adani Enterprises FPO Closing Date  31 January, 2023   Adani Enterprises FPO Allotment Status  3 February, 2023    Credit of Shares to the Demat Account  7 February, 2023   Adani Enterprises FPO Listing Date  8 February, 2023    Adani Enterprises FPO Face Value  ₹1 per share   Adani Enterprises FPO Lot Size  4 Shares    Adani Enterprises FPO Issue Size  ₹20,000 crore   Adani Enterprises FPO to be Listed on  BSE, NSE    Adani Enterprises FPO Price  ₹3,112 – ₹3,276   Any discount for retail investors?  Yes, ₹64 per share     Payment schedule for Adani Enterprises FPO:      At Floor Price (₹)  At Cap Price (₹)    On Application  1,556  1,638    One or More Subsequent Call(s)  1,556  1,638    Total  3,112  3,276     Financial snapshot     Particulars  FY 21  FY 22  Q2FY23    Revenue  ₹39,537 crore  ₹69,420 crore  ₹79,019 crore    Net Profit  ₹1,046 crore  ₹788 crore  ₹901 crore              A quick look at the Adani Enterprises FPO’s strengths, risks and threats  Strengths and opportunities   The company has a track record of incubating growing stage businesses and successfully managing and listing them.  As on 31 March 2022, revenue was ₹69,420 crore and it has grown at a CAGR of 14% in the last five years.  The company is one of the leading global players in integrated resource management. It manages the entire supply chain and provides one-stop-shop solutions to its clients.  Adani Enterprises is looking to tap opportunities in the green hydrogen sector and aims to build a fully-integrated green hydrogen ecosystem in India.   Risks and threats   Total borrowings of the company stood at ₹40,023 crore as on 30 September 2022, a rise of 24% year-on-year. The rise in borrowing level in one year is much higher than the profits made in the last five years.  The mining service business, which contributes 4.2% to revenue, is highly price sensitive, driven by a number of consumer contracts, awarded via a competitive tender process.  Company’s airport business revenue is dependent on passenger and cargo traffic, which in turn depends on economic and political conditions and the regulatory environment.  Some of the company’s businesses like green hydrogen, digital and data centres have a limited operating history, making it challenging to evaluate future prospects.            Adani Enterprises FPO details  | Adani Enterprises FPO date  The company has filed its Red Herring Prospectus with the market regulator SEBI. The Adani Enterprises FPO opening date – in other words, the Adani Enterprises FPO launch date – will be 27 January 2023. The Adani Enterprises FPO closing date is 31 January 2023. After this, investors will be updated about the allotment status on 3 February 2023.  Investors, who receive allotment, can expect shares to be credited in their demat account on 7 February 2023. Besides this, the Adani Enterprises FPO listing date is 8 February 2023. The listing date is the date on which the shares of a company get listed on the stock exchanges – NSE and BSE.  | Adani Enterprises FPO Price Band  The Adani Enterprises FPO is a follow-on public offering. Adani Enterprises FPO price band has been set between ₹3,112 – ₹3,276 per share. The price band is a price range within which investors can apply for the FPO. Good News for retail investors!! The company is offering a discount of ₹64 per equity share under the retail category. When the Adani Enterprises FPO opens, interested investors will have to choose a price within the band to apply for the public issue.  | Adani Enterprises FPO Lot size  The Adani Enterprises FPO lot size is 4 shares, and an investor can apply for a minimum of 1 lot.           How to apply for the Adani Enterprises FPO?  You can apply for the Adani Enterprises FPO on Upstox.  Follow these steps to apply for the FPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Adani Enterprises’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Adani Enterprises FPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an FPO closes.  Here’s a step-by-step guide on how to check the Adani Enterprises FPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Adani Enterprises FPO allotment status will be mentioned             Open a demat account with Upstox to apply for the Adani Enterprises FPO  To apply for the Adani Enterprises FPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?            Upstox – trading app to apply for the Adani Enterprises FPO  Applying for FPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Adani Enterprises FPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an FPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes FPO applications easy.