Adani FPO gets full membership amid spat with Hindenburg: Who kicked them out

Uptake from retail investors was notably weak, with a major portion of the offer taken up by institutions and existing shareholders, including Abu Dhabi’s International Holding Co. Adani has denied the short seller’s allegations and threatened legal action against the US-based firm.

According to stock exchanges data, bids were received till 5:30 pm for 5,08,68,352 shares or 112% of the 4,55,06,791 new shares on offer under the follow-on public offer (FPO). Strong demand from non-institutional investors (NIIs) and qualified institutional buyers (QIBs).

NII made bids for more than three times the 96.16 lakh shares reserved for them. According to the data, around 1.28 crore shares reserved for qualified institutional buyers or QIBs were almost fully subscribed.

The employee quota attracted 55 per cent bids, while retail investors bid for only 12 per cent of its category, despite additional exemptions, to expand its shareholder base and allow “average, ordinary Indian moms and dads” as shareholders. Disrupted Adani’s plan to invite

Why is FPO important for Adani?

The FPO is important for Asia’s richest man, not just because it will help reduce the group’s debt, but because its success will be seen as a mark of investor confidence in his biggest business and prestige. faces one of the challenges.

Follow-on Public Offering (FPO) is the issue of shares to investors by a company listed on a stock exchange after its initial public offers.

There were concerns that the FPO may not get a strong response from investors amid a Hindenburg Research report which claimed Adani Group Having weak business fundamentals among others.

Among the most notable buyers is Abu Dhabi’s International Holding Company, which said it would invest about $400 million. The funding from IHC, controlled by a prominent member of the emirate’s royal family, will represent about 16% of the offering and follows Adani’s investment of nearly $2 billion in companies last year.

“Investors will see the successful completion of the FPO as a welcome relief as it implies that the company still has the backing of institutional investors. The FPO will help raise the public float of Adani Enterprises (thereby partially reducing the promoters’ focus) Shareholding), as well as reduce leverage for the company and improve investor sentiment for the wider group,” pointed out Leonard Law, senior credit analyst at Lucer Analytics, Singapore. reuters,

Vineet Bolinjkar, Head of Research, Ventura Securities, Mumbai, said, “The fact that the FPO has been fully subscribed strengthens the confidence of institutional buyers. We believe that the successful completion of the FPO means That retail participation will come back once prudence prevails all around.” Stock volatility.

“The FPO is a step in the right direction, given the fact that interest rates are expected to rise and infusing equity in the business will help fund the development part as well as repay part of the debt that the equity The stroke has been. The company plans to raise capital.”

Shares of flagship Adani Enterprises closed up 3.35 per cent on Tuesday, but remained well below A price range of 3,112-3,276 has been set for the FPO, making it cheaper to buy them in the open market.

Adani Transmission, Adani Green Energy and Adani Ports closed higher by 3.73, 3.06 and 2.67% respectively.

But Adani Total Gas saw another day of dramatic decline, trading halted for another session after taking a 10 per cent dive in the morning.

Adani, 60, was the world’s third-richest person last week but has now slipped to the eighth position in Forbes’ real-time global rich list.