Adani Enterprises FPO hits target as investors dump Hindenburg report
01 Feb 2023
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The Rs20,000 crore follow-on public offer (FPO) of Adani Enterprises, the largest ever FPO to hit the Indian capital market, was fully subscribed on Day 3 of the issue.
The FPO of Adani Enterprises received bids for 50.86 million shares against the 45.5 million shares on offer, representing a 112 per cent subscription, on 31 January, the third and final day of bidding.
This excludes the anchor portion that was fully subscribed.
Retail investors stung by the Hindenburg report took a backseat as the stock price slid below the FPO price band, bidding for only 12 per cent of the shares set aside for them.
Qualified institutional buyers (QIB) were at the forefront. They bid for 16.1 million of the 12.8 million shares set aside for them, indicating a 1.26 times subscription.
Adani Enterprises shares, hammered by the notorious Hindenburg report of 24 January that accused the group of engaging in "brazen stock manipulation" and an "accounting fraud scheme.", rebounded after a sharp correction, gaining 2.8 per cent to hit Rs2,974 on the NSE.
Adani Enterprises, the group's flagship company, gained 2.80 per cent, while shares of Adani Transmission, Ambuja Cements, and ACC gained between 3 and 4 per cent. Adani Green Energy and Adani Ports gained 3 per cent and 2.6 per cent, respectively.
Adani Total Gas, Adani Wilmar, and Adani Power were locked in their respective lowest trading prices for the day. Adani Group, however, lost Rs4,000 crore in market capitalisation after shedding Rs5.6 lakh crore since last Tuesday.
The group pledged more shares of Adani Ports on Tuesday, amounting to 2.69 per cent of its stake in the company, according to a disclosure to the BSE.
The Adani Port stock has fallen 20 per cent since 24 January. On Monday, Adani Total Gas and Adani Green had fallen 20 per cent each - the lowest permissible trading limit. Adani Power, Adani Wilmar, and NDTV hit the 5 per cent lower circuit limit. Gautam Adani lost $75 billion in market value after the short attack.
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