The Follow-On Public Offering (FPO) of Adani Enterprises received bids for 50.86 million shares against an offer size of 45.5 million shares, representing a 112 percent subscription, on January 31, the third and final day of bidding.
This excludes the anchor portion that was fully subscribed.
Retail investors took a backseat as the stock price has slid below the FPO price band, bidding for only 12 percent of the shares set aside for them.
Qualified institutional buyers (QIB) were at the forefront. They bid for 16.1 million of the 12.8 million shares set aside for them, indicating a 1.26 times subscription.
Non-institutional investors subscribed 332 percent of the portion set aside for them. They bid for 31.93 million shares against the 9.6 million reserved. Meanwhile, employees have bid for 55 percent of the shares reserved for them.
Days before the issue opened, on January 25, anchor investors, a part of the qualified institutional buyers, subscribed nearly Rs 6,000 crore worth of shares. One of the anchor investors, IHC, poured in another $400 million, it said in a statement on January 30.
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Last week, Adani group shares were hammered after an American short seller, Hindenburg Research, accused the company of using tax havens and flagged debt concerns in a report. In a 413-page rebuttal, the Adani group denied all charges.
At the end of day 1, January 27, the Rs 20,000-crore FPO was subscribed 1 percent. On the second day, the subscription stood at 3 percent.
The FPO’s success demonstrates the group’s ability to attract investors with bold expansion plans in industries ranging from green energy to ports and e-commerce, said analysts.
The offer, which closes on January 31, has a price band of Rs 3,112-3,276 a share.
The flagship company of the Adani group intends to use the proceeds to fund projects in the green hydrogen ecosystem, improve existing airport facilities, and construct new expressways.
Some debt owed by the company and its subsidiaries (Adani Airport Holding, Adani Road Transport, and Mundra Solar) will also be repaid with the proceeds.
Adani Enterprises shares rebounded after a sharp correction, gaining 2.8 percent to close at Rs 2,974 on the NSE.
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