The Adani Group plans Rs. 1500 crore-IPO for Mundra Port and SEZ

Adani group company Mundra Port and Special Economic Zone Limited will raise money from the capital markets. It has filed a draft red-herring prospectus with SEBI. The issue size of the company would be around Rs. 1500 crores. The IPO is expected to hit the capital market between last week of May and first week of June. The Adani Group has appointed DSP Merrill Lynch, JM Morgan Stanley, SSKI, Enam Financial and SBI Capital Markets as their lead managers to the issue. Mundra Port and SEZ is the first company from the SEZ and the port sector to hit the capital markets. The proceeds of the issue would be utilized for the further development of the Mundra port and SEZ.

Read The Economic Times article.

ACC exits Everest Industries; sells 8.2% stake in open market

ACC has sold off its residual 8.2% equity stake in Everest Industries in the secondary market, thus finally exiting from its majority equity holding in the company. The stake was put up for sale by Holcim following its acquisition of ACC in India two years ago. ACC had earlier tried to sell its 76% stake in the company to the Adani Group, who had also announced an open offer to acquire further stake as required by the takeover code. However, the offer failed to materialize due to Everest’s valuation-related issues. Finally, about a year back ACC sold off 50% stake to Eternit Finvest managed by the Mrinalini Trust of Gujarat Ambuja’s Narottam Sekhsaria. The stake sale would have fetched about Rs. 10-15 crores to ACC based on the market price.

Everest Industries is a building materials manufacturer and the oldest player in the roofing industry. The company is in the asbestos-based roofing materials business and has a turnover of about Rs. 250 crores. It sells its roofing products under the popular Everest brand while its interior products are sold under the brand E-Board.

Article in The Economic Times.

The Adani Group in the process of selling retail business to Reliance

The Adani Group has initiated the process of selling off its retail business to Reliance Industries. The deal is estimated to be around Rs. 200 crores. Reliance Industries has started interviewing the Adani retail staff and will select people it wants to retain in the business.

Adani Retail operates a total of 54 outlets across Gujarat and sells groceries and apparel. With the acquisition Reliance will get access to over 54 supermarkets and hypermarkets across nine cities in Gujarat. The acquisition will provide a ready infrastructure to Reliance, as 60% of Adani’s retail outlets are company-owned. The acquisition formalities are expected to be fully completed in a couple of months.

For more details, read The Economic Times article.