Gautam Adani, chairman and promoter of the Adani group, is likely to get richer by over $2.3 billion following the public issue of Adani Power that is slated to open on July 28. The company is aiming to raise Rs 2,700-3,000 crore by offloading 301.6 million equity shares.
The price band has been fixed between Rs 90 and 100. At Rs 100 per share, the valuation of the company with a total of 2.18 billion shares comes to about Rs 21,800 crore.
Adani, a first generation entrepreneur figured in Forbes' top 100 list of world's richest last year. His wealth, which stood at $9.3 billion, has seen an erosion in market capitalisation as a result of the economic slowdown.
Gautam Adani and his family have crossholding in Adani Power through Adani Enterprise. Post dilution, Adani Enterprise will hold about 70 per cent stake in the power firm. The wealth generated for Adani Enterprise through power issue is expected to be about Rs 15,260 crore.
Gautam Adani, who holds 70 per cent in Adani Enterprise, will be wealthier by Rs 10,682 crore. Besides, the promoters also have three per cent holding in Adani Power through Ventura Capital and this would take the overall wealth to Rs 11,336 crore or $ 2.3 billion (Rs 48 a dollar).
Adani group promoters' wealth through their holdings in two listed entities -- Adani Enterprise (70 per cent) and Mundra Port and SEZ (66 per cent) -- stood at Rs 29,120 crore or $ 6.1 billion. The market capitalisation of Adani Enterprise and Mundra Port & SEZ stood at Rs 20,700 crore and Rs 22,170 crore respectively on Tuesday.
Adani Power is aiming to raise funds to partly finance the 4,620-Mw Mundra power project and 1,980 Mw Tiroda power project. The company recently commissioned its first turbine of 350 Mw at Mundra and will commission Phase one of 1,320 Mw by March 2010.
“We are aiming to invest Rs 80,000 crore to reach an overall power generation capacity of 20,000 Mw,” Adani said on the sidelines of a conference to announce the launch of the public issue.
The company is looking at other sources of power generation including hydro and other alternative sources, said a senior company official.
