Billionaire Gautam Adani’s group on Saturday ruled out any price changes or the dates of the sale of Rs 20,000 crore follow-on shares at the conglomerate’s flagship company, despite the shares being hammered below the bid price following a scathing report from a US short seller.
“The further public offering (FPO) of Adani Enterprises Limited is progressing on schedule and the announced price range. There is no change in the schedule of the issue price,” said a spokesman for the group.
The FPO received only one percent enrollment on its opening day on Friday. Against an offer of 4.55 crore shares from Adani Enterprises Ltd, only 4.7 lakh shares were subscribed for, according to information from the BSE.
Adani Enterprises fell nearly 20 percent below the offer price of its secondary sale as all seven of the conglomerate’s publicly traded companies took a beating in the wake of Hindenburg Research, which alleged the group was “involved in brutal stock manipulation and accounting fraud.” over decades”.
The Group has dismissed the report as malicious and fake intended to torpedo the FPO.
Adani Enterprises sells shares in a price range of Rs 3,112 to Rs 3,276. On Friday, the share price closed at Rs 2,762.15 on the BSE.
“All of our stakeholders, including bankers and investors, have full confidence in the FPO. We have great confidence in the success of the FPO,” the spokesperson added.
The FPO closes on January 31.
On Wednesday, Adani Enterprises raised Rs 5,985 crore from anchor investors.
The company allocated 1.82 crore shares across 33 funds at Rs 3,276 each, bringing the deal size to Rs 5,985 crore, according to a circular uploaded on the BSE website.
Foreign investors who picked up the shares included Abu Dhabi Investment Authority, BNP Paribas Arbitrage, Societe Generale, Goldman Sachs Investment (Mauritius) Ltd, Morgan Stanley Asia (Singapore) Pte, Nomura Singapore Ltd and Citigroup Global Markets Mauritius.
A slew of domestic institutional investors including LIC, SBI Life Insurance Company, HDFC Life Insurance Company and State Bank Of India Employees Pension Fund also participated in the anchor book.
Of the proceeds of Rs 20,000 crore from the FPO, Rs 10,869 crore will be used for green hydrogen projects, work on the existing airports and construction of a greenfield highway.
An amount of Rs 4,165 crore will be used for the repayment of debts incurred by its subsidiaries in the fields of airports, roads and solar energy projects.
Adani Enterprises is India’s largest publicly traded business incubator, growing businesses in four core sectors: energy and utilities, transport and logistics, consumer and primary industry.
The current business portfolio includes the green hydrogen ecosystem, data centers, airports, digital, mining, defense and industrial manufacturing.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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