Investment banks are set to receive nearly 1 billion rupees ($12 million) in total fees after helping Indian tycoon Gautam Adani with a closely watched follow-on share sale, according to people familiar with the matter. .
The fee is equivalent to 0.5% of the 200 billion rupees raised Adani Enterprises Limited offer, people said, Who? asked not to be identified because the information is private.
Top Organizer – ICICI SecuritiesJefferies Financial Group and State Bank Of India Capital Markets – will receive half of the total fee, while seven other banks will share the rest, the people said. He said that the fees would be paid in the coming month.
Adani Enterprises’ offering – India’s biggest follow-on share sale – caught the attention of global investors after US short seller Hindenburg Research said the group used a web of firms in tax havens to inflate revenue and stock prices . The Adani Group termed the allegations as “an attack on India, the independence, integrity and quality of Indian institutions, and India’s growth story and ambition”.
Read all the stories related to Adani’s failure Here
Bloomberg News has reported that a team of more than 60 people at the Adani Group worked on the share sale, some of whom regularly called global and domestic investors to address concerns raised by the short seller’s report.
On January 28, the group held major roadshows with regional investors in Adani’s home state of Gujarat to convince them of the stock’s potential, said a person familiar with the matter. The person said that several high-net-worth individuals offered help to the Adani group.
Read also: Credit Suisse stops accepting Adani Group bonds amid Hindenburg row
The share sale was fully subscribed on the last day on Tuesday due to last-minute spurt in demand from institutional investors. At least two of India’s biggest business families, including tycoons Sajjan Jindal and Sunil Mittal, have participated, in a sign of solidarity with Adani, Bloomberg News reported on Wednesday.
The other banks on the deal are: Axis Capital Limited, BOB Capital Markets Limited, IDBI Capital Markets & Securities Limited, JM Financial Limited, IIFL Securities Limited, Monarch Networth Capital Limited and Elara Capital (India) Pvt.
A spokeswoman for Jefferies declined to comment. Representatives for the other arrangers and Adani Enterprises did not immediately respond to requests for comment.
The text of this story is published from a wire agency feed without any modification.
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