According to Jugeshinder Singh, chief financial officer of the company, billionaire Gautam Adani's group plans to spin off industries like hydrogen, airports, and data centres between 2025 and 2028 after they meet a particular investment profile.
Adani Enterprises Ltd., the group's business incubator, seeks to raise Rs 20,000 crore through a follow-on share offering. AEL over the years first supported industries including ports, power, and city gas before they were sold off or demerged into separate public businesses.
The group intends to invest USD 50 billion over the following ten years in hydrogen, which is now held by AEL, along the whole value chain. Additionally flourishing are the operations at airports, mines, computer centres, roadways, and logistics.
The business wants to rank among the most reasonably priced suppliers of hydrogen, a future fuel with no carbon footprint. It is also making big bets on its airport business in an effort to overtake government services as the largest service base in the country in the upcoming years.
The 60-year-old Adani started out as a trader before launching a quick diversification push that saw him broaden his empire, which was previously focused on ports and coal mining, to include data centres, cement, airports, and green energy. He now runs a media company.
Singh claims that the objective of the follow-on share offer is to broaden the pool of shareholders by attracting more institutional, retail, and high-net-worth buyers.
He stated that the primary issue rather than a rights issue was chosen because the company wanted to expand the engagement of regular investors. Increasing the free float would also address liquidity difficulties, he claimed.
AEL will use the money obtained to develop renewable hydrogen projects, airport infrastructure, and greenfield highways in addition to paying off some of its debt.
The follow-on public offer (FPO), which will start on January 27 and expire on January 31, will sell shares for a price range of Rs 3,112 to Rs 3,276 per share, according to the offer letter.
Out of the Rs 20,000 crore in FPO earnings, Rs 10,869 crore will be allocated for green hydrogen projects, airport upkeep, and the construction of a greenfield road. Another Rs 4,165 crores will be used to settle the debt accrued by the airport, solar, and road projects of its companies.
Most of Adani's recent business growth has been accomplished through AEL.
A green hydrogen ecosystem, data centres, building new roads and airports, food FMCG, digital, mining, and industrial production are just a few of the companies in its present business portfolio. As of September 30, 2022, it owed a total of Rs 40,023.50 crore.