Adani’s FPO oversubscribed, but out of top 10 richest people in world

Despite a negative report from New York short seller Hindenburg that marred market sentiment, India’s largest follow-on public offering or FPO worth Rs 20,000 crore by Adani Enterprises has been oversubscribed the last day today with strong support from non-institutional investors. Gautam Adani has now lost his position in the elite club of the top 10 billionaires in the world

According to BSE data, the company received offers for 4,63,97,960 shares against 4,55,06,791 shares on offer at 15:25 IST. The portion reserved for NII was oversubscribed 3.26 times, followed by the QIB portion which was 97% subscribed, and the employee portion was 52% subscribed. The retail investor was only 11% subscribed.

Amid a series of accusations and counter-accusations over the Hindenburg report alleging fraud and manipulation of shares at the Adani Group, the stock has seen a sharp erosion in value. That being said, Adani Enterprises shares rallied for two straight sessions.

The voucher rose 3.35 per cent to close at Rs 2,975. Adani Enterprises gained 6.76 per cent to hit an intraday high of Rs 3,072.95 after Abu Dhabi-based IHC announced its FPO investment plan. It settled 4.21 per cent higher in the previous session.

On Wednesday, January 25, the anchors occupied 29.92 percent of the size of the FPO. The anchors bought 1,82,68,925 shares of the 6,10,50,061 shares that were offered. 23 key anchor investors received a significant portion of the Rs. Total anchor allocation of Rs 5,984.90 crore.

The company did not grant any shares to domestic mutual fund schemes out of the total 18268925 shares issued through anchor placement. Insurance companies made up the majority of national institutional participants.

A total of 6,47,38,475 shares of capital will be made available to investors through the FPO. Four shares of FPO’s capital constitute the minimum offering lot, and subsequent offering lots are multiples of four shares.


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