No change in FPO price, date, says Adani Group; only 1% shares sold on Day 1
The sharp fall in Adani stock prices following the Hindenburg Research report will not affect the price or the dates of the Rs 20,000-crore follow-on share sale of Adani Enterprises, the group said on Saturday.
“Adani Enterprises Limited’s follow-on public offer (FPO) is going as per schedule and the announced price band. There is no change in either the schedule or the issue price,” a Group spokesperson said.
The FPO got subscribed only one per cent 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.
Also read: For Hindenburg Research, Adani Group is a man-made disaster in the making
Adani Enterprises fell almost 20% to below the offer price of its secondary sale as all the seven listed companies of the conglomerate took a beating in the aftermath of the Hindenburg report. It alleged that the group was “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”
The Group has dismissed the report as malicious and bogus, aimed at torpedoing the FPO.
FPO closes on Jan 31
Adani Enterprises is selling shares in the price band of Rs 3,112 to Rs 3,276. On Friday, its share price closed at Rs 2,762.15 on the BSE.
“All our stakeholders, including bankers and investors, have full faith in the FPO. We are extremely confident about the success of the FPO,” the spokesperson added. The FPO closes on January 31.
Also read: Hindenburg report: Congress seeks probe into charges against Adani
On Wednesday, Adani Enterprises raised Rs 5,985 crore from anchor investors.
The company allotted 1.82 crore equity shares to 33 funds at Rs 3,276 apiece, taking the transaction size to Rs 5,985 crore, according to a circular uploaded on the BSE website.
Who picked up shares?
Foreign investors who picked up the 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.
Also read: Adani considering ‘legal options’ against Hindenburg for ‘unresearched report’
Of the Rs 20,000-crore proceeds from the FPO, Rs 10,869 crore will be used for green hydrogen projects, work at the existing airports, and construction of a greenfield expressway. An amount of Rs 4,165 crore will be utilised for the repayment of debt taken by its airports, road and solar project subsidiaries.
Adani Enterprises is India’s largest listed business incubator, and breeds businesses in four core industry sectors — energy and utility, transportation and logistics, consumer, and primary industry.
The current business portfolio includes green hydrogen ecosystem, data centres, airports, digital, mining, defence, and industrial manufacturing.
(With agency inputs)
