The billionaire Gautam Adani’s company hopes to sell out sectors like hydrogen, airports, and data centers between 2025 and 2028 if they satisfy certain investment requirements, according to Chief Financial Officer Jugeshinder Singh.
Adani Enterprises, the group’s business incubator, intends to sell further shares to raise Rs 20,000 crore. Ports, power, and city gas businesses were initially developed within AEL over time before being sold off or demerged into a number of publicly traded businesses.
The group intends to invest USD 50 billion over the following ten years on the AEL-hosted hydrogen supply chain. Roads, data centers, mining, airport operations, and logistics are all thriving. The companies must have grown to maturity and developed a reliable investment profile before ever considering a demerger. The target dates for these enterprises to fulfill the conditions for a demerger are between 2025 and 2028, according to Singh’s projections.
The company’s long-term objective is to make hydrogen, a potential carbon-free fuel, widely accessible to the general public at competitive pricing. It is also making big investments in its airport business in an effort to surpass government programs as the largest service base in the country within the next several years.
Due to his creative new business strategy, Gautam Adani, the richest man in India, is providing discounts of 10% to 15% to investors in India’s largest follow-on share sale. Accepted offers will require a 50% down payment and the remaining amount to be paid in one or more payments. Ordinary shareholders will receive a reduction of 64 rupees per share.
The secondary share offering, according to Singh, is being undertaken in an effort to draw in a bigger group of organizational, sales, and high-net-worth stockholders. He continued by stating that increasing the free float will help with financial issues and that the company preferred a central issue over a rights issue because it wanted to increase the participation of regular investors.
AEL will use the monies raised to develop green hydrogen projects, airport infrastructure, and greenfield highways in addition to paying down some of its debt. The price range for the follow-on public offer (FPO), which is set to start on January 27 and expire on January 31, is Rs 3,112 to Rs 3,276 per share.
Despite the Adani Group having borrowed less money overall from public banks over time, concerns regarding the banks’ financial statements persist. And as of March 2022, India’s “bad debt” ratio—a measure of how often loan repayments have been missed—was 5.9%, one of the highest of any comparable nation.