New Delhi: Billionaire Gautam Adani-led Adani Enterprises’ share sale was fully subscribed on Tuesday, helped by non-institutional investors, muted response from retail investors, and employees, Bombay Stock Exchange data revealed.
The $2.5 billion dollar follow-on public offer (FPO) comes after a tumultuous week for the group following a scathing report by American short-seller Hindenburg Research which claimed widespread financial malfeasance.
The 24 January report had flagged concerns about the use of tax havens and “substantial debt” at the group.
Following the report, Adani shares went on a downward spiral, but Tuesday’s success is being seen as investor confidence in the conglomerate. The share sale is India’s largest follow-on offering and will also help cut debt for the company.
Investors sought 4.62 crore shares of the 4.55 crore on offer, according to reports. Non-institutional investors put in bids three times of the 96.16 lakh shares reserved for them. The 1.28 crore shares reserved for qualified institutional buyers, or QIBs, were almost fully subscribed, according to Bombay Stock Exchange data.
Tuesday was the last day of the Rs 20,000-crore follow-on issue of the flagship Adani Enterprises. FPOs are carried out by listed companies usually to diversity their equity shareholding.
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