Adani Enterprises' Rs 20,000-Crore FPO Fully Subscribed On Final Day
The FPO was subscribed 1.12 times by the end of closing day on Jan. 31.
Adani Enterprises Ltd.'s follow-on public offering was fully subscribed on the third day.
Demand was spearheaded by non-institutional investors, and the portion was subscribed 3.26 times. The portion for institutional investors and retail investors were subscribed 97% and 11% respectively.
The Rs 20,000-crore FPO was subscribed 3% on the second day.
Adani Enterprises Ltd. launched its follow-on public offering on Friday.
The Adani Group's flagship company is offering shares on a partially-paid basis, aggregating up to Rs 20,000 crore, it said in its red herring prospectus filed with the markets regulator.
The company has pegged the floor price for the issue at Rs 3,112 per share and the cap price at Rs 3,276 apiece, according to the red herring prospectus.
It is also offering a discount of Rs 64 per share to retail investors. The minimum bid lot for the FPO will be four equity shares. Buyers can bid for multiples of four equity shares thereafter.
On application, bidders will have to pay half of the offer price upfront, while the balance amount will have to be paid on one or more subsequent calls—the same as the anchor portion.
Shares of Adani Enterprises Ltd. were trading 1.91% higher at Rs 2,948 at close of trade on Tuesday, according to the NSE. Volumes were at 3.9 times the 30-day average.
According to the filing, the Gautam Adani-led firm will use the proceeds from the FPO to repay debt worth Rs 4,165 crore for itself and its units. It will utilise around Rs 10,869 crore for capital expenditure in the group's airport and green energy projects. The rest will be deployed for general corporate purposes.
The Adani Group said it is confident that its flagship firm's FPO will be fully subscribed, even as the conglomerate responded in detail to Hindenburg Research's accusations, alleging that the report of the U.S.-based firm is unsubstantiated and misleading.
The FPO will be fully subscribed and backed by institutional investors, Jugeshinder Singh, chief financial officer at Adani Group, said in an interview with BQ Prime.
Subscription Details: Day 3
The FPO was subscribed 1.12 times as on 7 pm on Jan. 31.
Institutional investors: 1.26 times.
Non-institutional investors: 3.32 times.
Retail investors: 0.12 times.
Employees: 0.55 times.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.