Only 1 per cent of the shares put on sale under the ₹20,000-crore follow-on public offer (FPO) by Adani Enterprises Ltd (AEL) were subscribed on the first day of the offer. The company received total bids of 4,70,160 shares against the issue size of 4,55,06,791 shares.
The portion reserved for retail investors got bids for 3,99,880 shares against 2,29,08,464 shares on offer. HNIs (non-institutional investors) have bid for 60,456 shares against the reserved portion of 96.16 lakh shares, and QIBs have bought 2,656 shares of the 1.28 crore shares set aside for them. the The issue will close on January 31.
Read also: CLSA, Jefferies, InGovern downplay Hindenburg Research findings on Adani
This comes even as the anchor investor book of the FPO AEL was subscribed 1.5 times by 33 funds and investors.
Meanwhile, the share price of several Adani companies continued to fall on Friday after Hindenburg Research made several allegations against the group. It said four of Adani’s listed companies are on the de-listing threshold due to high promoter ownership.
Read more: For Hindenburg Research, Adani Group is a man-made disaster in the making
The report also said that five companies in the group (all but Adani Ports and Adani Wilmar) have current ratios below 1.0, suggesting a heightened short-term liquidity risk.
‘May not impact’
According to proxy advisory firm InGovern Research, the report released by Hindenburg Research may not impact Adani group’s FPO share sale.
“The anchor book has already been oversubscribed on January 25, 2023, given that the objective of many of the long-term investors would be to hold the stock for many years. There could be some sentimental hit among retail investors when the FPO opens on 27th January 2023,” InGovern said.