Adani Stays Firm on FPO Price and Dates, Confident in Share Sales Proceeding
- ByStartupStory | January 30, 2023
On Saturday, Gautam Adani’s conglomerate firm affirmed that there will be no alterations in the price or schedule of its Rs 20,000 crore follow-on share sale, despite the company’s stocks falling below the offer price following a critical report by a US short seller.
A group spokesperson stated “Adani Enterprises Limited’s further public offer (FPO) is going as per schedule and the announced price band. There is no change in either the schedule of the issue price,”
The FPO got subscribed just 1% on the opening day on Friday. Against an offer of 4.55 crore shares of Adani Enterprises Ltd, only 4.7 lakh shares were subscribed, according to information available from the BSE.
Adani Enterprises experienced a drop of nearly 20%, falling below the offer price of its secondary sale, as all seven of the conglomerate’s listed companies experienced a decline in response to Hindenburg Research’s allegations of “long-term stock manipulation and accounting fraud.” The Adani Group has rejected the report as baseless and malicious, claiming it is intended to sabotage the FPO.
Adani Enterprises is offering shares at a range of prices from Rs 3,112 to Rs 3,276. On Friday, its stock closed at Rs 2,762.15 on the BSE. A spokesperson for the company stated, “We have the full support and confidence of all our stakeholders, including bankers and investors, in the success of the FPO. We are highly confident in its success.” The FPO closes on January 31st. On Wednesday, the company raised Rs 5,985 crore from anchor investors by allotting 1.82 crore equity shares to 33 funds at a price of Rs 3,276 each, according to a BSE website notice.
Foreign investors who picked up 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.
The Enterprises will use Rs 4,165 crore to pay off debts from its subsidiaries in airports, roads, and solar projects. The company operates in four key industries: energy and utilities, transportation and logistics, consumer goods, and primary industries. Its business portfolio encompasses green hydrogen, data centers, airports, digital services, mining, defense, and industrial manufacturing.
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