HNIs, institutional investors help make Adani FPO a success

However, retail investors and Adani employees remained indifferent, given the shares were available at a lower price in the secondary market.

Other than anchor investors, who invested 6,000 crore last week, qualified institutional buyers (QIBs) – largely foreign institutional investors – and HNI family offices participated in large numbers for the balance 14,000 crores.

On Monday, Abu Dhabi’s royal family-backed International Holding Company (IHC) said it would invest $400 million in the FPO to take up 16% of the share sale.

The buzz in the market was that the FPO of Adani Enterprises was backed by family offices of some of the country’s leading industrialists.

Although, Peppermint Could not independently verify this.

Against the 45.5 million shares on offer, institutional and non-institutional shareholders, retail and employees bid for a total of 50.9 million shares, helping the FPO go ahead.

Adani Enterprises share 2,975 on BSE, up 3.5% from their previous day’s close but down 4.4% from the floor price of the FPO. 3,112.

The share sale price was in the range 3,112-3,276, with a discount of Rs. 64 for retail investors.

“Retail and employee interest remained subdued, at least due to fall in prices, but interest by HNI family offices and FPIs, which bid at a premium to market price, is likely to ensure some short-covering in the near term,” “The negative overhang on stocks will narrow sharply now,” said Rajesh Palvia, vice-president, Axis Securities.

While QIBs and non-institutional investors subscribed 1.26 times and 3.32 times their quota, retail investor subscription stood at 0.12 times, while employees’ subscription was just over half of the reserved portion.

Arun Kejriwal, founder of investment advisory firm KRIS, said that unlike institutional investors, who take a long-term view and stick to their commitment to invest even after a subsequent price correction, retail “only and only applicable only if the price was less than the prevailing market rate on application.

The success of the FPO eased the selling pressure on the group’s shares. However, the market cap of 10 listed stocks of Adani declined After falling Rs 2,160 crore on Tuesday 5.7 trillion in the three sessions till Monday.

Adani Green, Adani Transmission, Adani Enterprises, Ambuja Cements, Adani Ports, ACC and NDTV closed 1-4% higher, with the only exceptions being Adani Total Gas, Adani Wilmar and Adani Power, which are stuck at the lower circuit of 10% and 5%.

The recovery in these stocks also eased pressure on banking stocks such as State Bank of India and ICICI Bank, due to which both the benchmark indices – Sensex and Nifty – ended marginally in the green after a turbulent session ahead of key events. . Union budget and Fed policy results on Wednesday.

Jugeshinder Singh, chief financial officer of the Adani Group, had said a day earlier that the offer would go ahead without any extension or change in the issue price, despite concerns about the impact of the Hindenburg Research allegations on the fate of the FPO.

The cut-off price of the offer will be announced on Wednesday.

Hindenburg Research alleged price manipulation and accounting fraud by the group, which the group has dismissed as baseless and unproven.

The Adani Group is examining legal redress based on the advice of its legal team, in which Hindenburg has dared to do so.