Adani Enterprises’ ₹20,000 crore FPO fully subscribed on the last day

• Adani Enterprises’ ₹20,000 crore follow-on public offer (FPO), India’s largest so far, has sailed through minutes before the markets closed on Tuesday.
• Leading the subscriptions were the non-institutional investors whose subscriptions stood at 332% of their respective category, while demand in the retail category was the lowest at just 12%.
• The Adani Enterprises’ stock, at its current market price of ₹2,975, is still 4.4% below the lower limit of its follow-on public offer (FPO) price band of ₹3,112.

Adani Enterprises’ ₹20,000 crore follow-on public offer (FPO), India’s largest so far, has sailed through minutes before the markets closed on Tuesday.

The FPO saw rapid acceleration in subscriptions today after the Day 2 subscription stood at just 3%, even as all Adani Group stocks remain under pressure in the aftermath of the Hindenburg Research report.

Leading the subscriptions were the non-institutional investors whose subscriptions stood at 332% of their respective category, while demand in the retail category was the lowest at just 12%.

The Adani Enterprises’ stock, at its current market price of ₹2,973.9, is still 4.4% below the lower limit of its follow-on public offer (FPO) price band of ₹3,112.

The company’s FPO shares are trading at a discount of ₹30 per share in the grey markets. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

The company secured an anchor investment of ₹5,985 crore on January 25.


Source: BSE, as at 3:52 p.m., January 31, 2023

Three out of the nine Adani Group stocks closed the day in red on Tuesday, hitting their respective lower circuits.


Source: NSE, current market price as at 3:30 p.m., January 31, 2023

Abu Dhabi-based International Holding Company to invest $400 million in Adani Enterprises FPO

The Adani Enterprises FPO received a shot in the arm with the Abu Dhabi-based International Holding Company committing an investment of $400 million (approx. ₹3,244 crore).

This comes at a time when the Adani Group is under scrutiny after a report by a New York-based short seller, Hindenburg Research, alleged that the group has indulged in stock manipulation and accounting fraud.

This has resulted in a decline of over ₹5.57 lakh crore in market capitalization of the nine Adani Group companies since January 24 when the report was released — including ACC and Ambuja Cements.

A war of words has broken out between the Adani Group and Hindenburg Research. While the Adani Group called the report as “unsubstantiated allegations and misleading narrative”, Hindenburg Research accused Gautam Adani of pulling off the “largest con in corporate history”.

Hindenburg also said, “Fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised.”

Gautam Adani falls out of the top ten richest billionaires list

It has also led to a massive decline in the wealth of Gautam Adani, who fell out of the list of the top ten richest people on the Bloomberg Billionaires Index – Gautam Adani’s wealth now stands at $84.4 billion, down by $36.1 billion in 2023 so far.

Adani is now ranked 11th, and is ahead of Mukesh Ambani by just $2.2 billion. His wealth has declined by $34.6 billion since the Hindenburg report was released on January 24.

SEE ALSO:

Adani Group stocks witness high volatility amidst war of words between the company and Hindenburg Research

Adani Group companies lose ₹3.22 lakh crore in market value amidst tussle with Hindenburg Research

Adani Enterprises’ ₹20,000 crore FPO now open, analysts maintain cautious optimism