Adani Enterprises FPO: Subscription status on day 2 of the follow-on public offer
The follow-on public offer (FPO) of Adani group’s flagship company Adani Enterprises was on Friday subscribed just a per cent on the first day of the share sale as the Group stocks plunged after US short seller Hindenburg Research said that it took a short position in certain securities of the group which the Group dismissed as ‘baseless’. The offer, which is priced at ₹3,112 to ₹3,276, will conclude on Tuesday, January 31, 2023.
Against an offer of 4.55 crore shares of Adani Enterprises Ltd, only 4.7 lakh were subscribed, according to information available from the BSE. Retail investors put in bids for close to 4 lakh shares against 2.29 crore shares reserved for them while qualified institutional buyers (QIBs) sought just 2,656 shares against 1.28 crore reserved for them. Non-institutional investors sought 60,456 shares against an offer of 96.16 lakh shares.
On Wednesday, Adani Enterprises raised ₹5,985 crore from anchor investors ahead of its FPO. The company allotted 1.82 crore equity shares to 33 funds at ₹3,276 apiece, taking the transaction size to ₹5,985 crore.
Foreign investors who picked up the shares included Abu Dhabi Investment Authority, BNP Paribas Arbitrage, Societe Generale, Goldman Sachs Investment (Mauritius) Ltd, Morgan Stanley Asia (Singapore) Pte, Nomura Singapore Ltd and Citigroup Global Markets Mauritius.
A slew of domestic institutional investors, including LIC, SBI Life Insurance Company, HDFC Life Insurance Company and State Bank Of India Employees Pension Fund, also participated in the anchor book.
Out of the ₹20,000-crore proceeds from the offer, ₹10,869 crore will be used for green hydrogen projects, work at the existing airports and construction of a greenfield expressway.
The tentative date for share allocation is Friday, February 3, 2023 and Link Intime India Private Ltd has been appointed as the official registrar of the public offer.
Adani Enterprises shares fell almost 20% to below the offer price of its secondary sale as all the seven listed companies of the conglomerate took a beating on Friday in the aftermath of Hindenberg Research alleged that the group was “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.