Adani Enterprises shares rebounded after a sharp correction, gaining 2.8 percent to hit Rs 2,974 on the NSE.
On January 31, the third and final day of bidding, the Adani Enterprises Follow-On Public Offering (FPO) had received bids for 50.86 million shares against an offer size of 45.5 million shares, reflecting a 112 percent subscription.
This does not include the fully subscribed anchor section.
Only 12% of the shares reserved for retail investors were bid on as a result of the stock price falling below the FPO price band.
The front-runners are qualified institutional buyers (QIB). They submitted bids for 16.1 million of the reserved 12.8 million shares, which is a 1.26 times subscription.
The portion reserved for non-institutional investors has been subscribed by 332 percent. In contrast to the 9.6 million restricted shares, they have offered to buy 31.9 million. Employees are currently bidding for 55% of the reserved shares.
A portion of the eligible institutional purchasers, or anchor investors, bought for over Rs 6,000 crore worth of shares on January 25, just days before the issue launched. IHC, one of the anchor investors, said on January 30 that it had invested an additional $400 million.
Adani Group’s stock took a beating last week after American short seller Hindenburg Research accused it of utilising tax havens and raised financial issues in a report. The Adani group refuted all allegations in a 413-page response.
1 percent of the Rs 20,000 crore FPO had been subscribed by the end of day 1 on January 27. The subscription rate was 3% on the second day.
According to observers, the FPO’s performance shows the organization’s capacity to draw investors with audacious expansion plans in sectors like renewable energy, ports, and e-commerce.
The price range for the offer, which expires on January 31, is Rs 3,112–3,276 per share.
The Adani group’s flagship company plans to utilise the money to build new motorways, upgrade current airport facilities, and fund initiatives in the green hydrogen ecosystem.
With the money received, the business and its affiliates (Adani Airport Holding, Adani Road Transport, and Mundra Solar) will also pay off some debt.
After a steep fall, Adani Enterprises shares recovered, rising 2.8 percent to close at Rs 2,974 on the NSE.