Adani Enterprises, the flagship company of the Adani Group, raised 5,984.9 crore from 33 institutional investors, including Maybank Securities, Life Insurance Corp of India, SBI Employees Pension Fund, SBI Life Insurance, HDFC Life Insurance, Abu Dhabi Investment Authority, Goldman Sachs Investment and Morgan Stanley Asia. Investors bid for Adani’s anchor stake 20,000 crore follow-on public offer.
According to people aware of the development, the major portion of the FPO will open for retail investors later this week and was subscribed nearly 1.5 times. The subscription to the anchor book came on a day short seller Hindenburg raised concerns over Adani Group’s debt position, resulting in heavy losses in several Adani Group shares.
The FPO will be open for subscription from January 27-31.
The FPO committee of the Adani Enterprises Board, in consultation with investment bankers, has finalized the allotment of 18.27 million shares to anchor investors. 3,276 appears, the company told the stock exchanges. Anchor investors are half paid Rs 5,984.9 crore raised, or 1,638 per share which includes approx. 2,992.45 crore, with the balance 1,638 per share to be paid by the company board on one or more calls.
Maybank Securities is the largest investor, accounting for 34.09% of the anchor stake, with the total bid value 2,040 crores. Other large investors include NBFC Winro Commercial (India), which was allotted shares 334.99 crore, ELM Park Fund ( 339 crore), LIC ( 299.99 crore), ADIA ( 153.42 cr), SBI EPF ( 99.99 crore), SBI Life ( 124.99 Crore), BNP Paribas Arbitrage ( 250 crores), Societe Generale ( 100 Crore), Goldman Sachs Investment ( 146 crore) and Morgan Stanley Asia (Singapore) 82 crores.
Adani Enterprises shares fell 1.54% 3,389.85 on BSE Wednesday ahead of allotment details to anchor investors.
There will be a lock-in of 90 days from the date of allotment on 50% of the FPO shares allotted to anchor investors and an additional 30 days for the remaining 50% from the date of allotment.
Jugishendra ‘Robbie’ Singh, Chief Financial Officer, Adani Group, said in an interview, “The FPO aims to maximize the retail and HNI categories as they are inter-generational investors, unlike MFs or DIIs, who have a lot of money to invest.” Time is short.”
post it 20,000 crore FPO, the retail investor’s stake in Adani Enterprises will increase from around 1.4% to around 3.6%, he added.
On heavy valuations of his group companies becoming a potential deterrent for retail investors, Singh said, “High equity valuation means people value our growth, and this lowers our risk premium, which in turn will drive the value of our utility business in the
Company will give additional discount to attract retail investors 64 per partly paid-up share above the cut-off price. The price range for the FPO running from January 27-31 has been fixed between 3,112 more 3,276.
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