Adani Enterprises Ltd’s follow-on share sale has been fully subscribed on the last day of the Rs 20,000 crore issue, according to markets data.
Investors sought at least 4.62 crore shares against the offer of 4.55 crore shares.
Non-institutional investors put in bids for over three times the 96.16 lakh shares reserved for them. The 1.28 crore shares reserved for qualified institutional buyers, or QIBs, was almost fully subscribed, according to Bombay Stock Exchange data.
The FPO sailed through despite a scathing short-seller’s report that pummelled stocks in Adani group companies.
FPOs are done by already listed companies to diversify their equity shareholding.
“Investors would view the successful completion of the FPO as a welcome relief as it implies that the company still has the support of institutional investors. The FPO would help to enlarge Adani Enterprises’ public float (thereby partly addressing the issue over the promoters’ concentrated shareholding), as well as reduce leverage for the company and improve investor sentiment for the wider group,” Leonard Law, senior credit analyst at Singapore’s Lucror Analytics told news agency Reuters.