Adani Enterprises FPO subscribed 85% on Day 3, QIB portion booked 97%

Adani Enterprises FPO subscribed 85% on Day 3, QIB portion booked 97%

One of the anchor investors, Abu Dhabi’s IHC, contributed additional $400 million to the FPO.


In the afternoon of January 31, the third and last day of bidding, Adani Enterprises received offers for 38.74 million shares against an offer size of 45.5 million shares, reflecting an 85 percent subscription.

This does not include the fully subscribed anchor section.

Retail investors have stepped back as the stock price has fallen below the FPO price band, bidding for only 10% of the shares reserved for them.

QIBs (qualified institutional buyers) are in the fore. They have bid on 12.44 million of the 12.8 million shares allotted to them. This represents a subscription rate of 97 percent.

Non-institutional investors have oversubscribed to the tune of 250 percent of the allotted amount. They bid for 24 million shares, compared to 9.6 million reserved. Meanwhile, employees have bid on 45 percent of the restricted shares.

On January 25, only days before the offer opened, anchor investors, who were among the qualifying institutional purchasers, subscribed for over Rs 6,000 crore in shares. IHC, one of the anchor investors, announced another $400 million investment on January 30 in a statement.

Adani group shares were battered last week when Hindenburg Research, an American short seller, accused the business of utilising tax havens and raised debt worries in a research. Adani Group disputed all claims in a 413-page reply.

The Rs 20,000-crore FPO was 1% subscribed at the conclusion of day one, January 27. The subscription stood at 3% on the second day.

The sale, which runs through January 31, has a price range of Rs 3,112-3,276 per share.

The funds will be used to support projects in the green hydrogen ecosystem, expand current airport facilities, and build new motorways by Adani Group’s flagship enterprise.

The earnings will also be used to repay some debt owed by the business and its subsidiaries (Adani Airport Holding, Adani Road Transport, and Mundra Solar).

Adani Enterprises shares recovered following a steep drop, rising 3.4 percent to Rs 2,976 on the BSE.