Adani Enterprises FPO sees sluggish demand, subscribed 0.01x on Day 1 so far

By 4:25 p.m. on the first day, the Adani Enterprises FPO BSE data showed that retail investors’ bookings were subscribed 0.02x, employee reserves 0.04x with 0.01x, while NII and QIB are yet to bid.

The company has said that the net proceeds of the FPO will be used to repay debt and capital expenditure of Adani Enterprises Ltd and its subsidiaries. The tentative date of share allotment is 3rd February 2023 and Link Intime India Pvt Ltd has been appointed as the official registrar of the FPO.

Adani Group shares remained under pressure on Friday, plunging up to 20% in morning trade after US-based investment research firm Hindenburg Research made damaging allegations. Shares of Adani Total Gas declined 19.65 per cent, Adani Transmission 19%, Adani Green Energy 15.5% and Adani Enterprises 6%. Also, Adani Ports and Special Economic Zone fell 5%, Adani Wilmar fell 5% and Adani Power fell 5%.

Adani Group on Thursday said it is examining legal options to take ‘punitive action’ against Hindenburg Research for its ‘reckless’ attempt to sabotage a mega share sale in the group’s flagship firm – a statement that The American activist investor responded by saying that he stands by. Its report alleged ‘brazen’ market manipulation and accounting fraud by the group.

Sensex and Nifty closed over 1% lower on Friday to hit a three-month low, as Adani group companies started offloading in their shares and banks, taking a hit in the group’s market value in two days. A combined $48 billion was wiped out.

Meanwhile, India’s markets regulator will study the Hindenburg Research report to add to its own ongoing preliminary probe into the group’s foreign portfolio investors, two sources told Reuters on Friday.