The flagship company of the richest Indian Gautam Adani-led group submitted an offer letter to stock exchanges on Wednesday in support of a proposed Rs 20,000 crore follow-on public offering (FPO).
The offer letter states that Adani Enterprises Ltd. (AEL)’s FPO will open on January 27 and close on January 31. Green hydrogen projects, work at existing airports, and the construction of a greenfield expressway will all receive Rs 10,869 crore from the FPO’s Rs 20,000 crore proceeds. Repaying the debt taken on by its subsidiaries in the fields of solar projects, the road, and airports will cost an additional Rs 4,165 crore.
Adani, 60, started out as a trader. Since then, he has been rapidly diversifying his business, expanding his port and coal mining empire to include green energy, airports, data centers, and cement. Additionally, the majority of the new business growth is carried out via AEL.
Energy and utility, consumer, transportation and logistics, and primary industry are AEL’s four core industry sectors, making it India’s largest listed business incubator.
AEL claims that over the course of time, they have planted new business interests for the Adani group, grown those interests into substantial, self-sustaining business verticals, and then demerged those verticals into platforms that are independently listed and scalable.
A green hydrogen ecosystem, data centers, developing airports, developing roads, food, FMCG, digital, mining, defense, and industrial manufacturing are all part of its current business portfolio.
The company is taking advantage of opportunities in sectors like the aviation industry, data centers, and green hydrogen. It stated that they are establishing a green hydrogen ecosystem with the intention of incubating, building, and developing an integrated ecosystem for the production of green hydrogen from beginning to end.
The ecosystem also includes the production of renewable energy and green hydrogen itself, as well as the transformation of some of the produced green hydrogen into derivatives, such as green nitrogenous fertilizers, ammonia, and urea, for both the domestic market and exports, to lower the cost of renewable power.
AEL manages seven operational airports in Mumbai, Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati, and Thiruvananthapuram, as well as one new airport in Navi Mumbai. It is also working on projects for India’s infrastructure, like roads.
It had previously stated that it would invest USD 50 billion in the green hydrogen ecosystem over the next ten years to produce up to 3 million tons of green hydrogen. Additionally, it intends to increase the annual capacity of its solar module manufacturing capabilities at the Mundra SEZ in Gujarat to up to 10 GW.