Adani Enterprises’ Follow-on Public Offering (FPO) has garnered significant interest from marquee investors, despite allegations of serious financial risks made by an investment research firm. The FPO, which is the largest in India’s history, has received 1.5 times subscription from 33 funds and investors, with anchor investors bidding for shares worth ₹9,000 crore.
Notable investors participating in the FPO include Abu Dhabi Investment Authority, Mubadala Investment, BNP Paribas, Maybank Asia, LIC, HDFC Life, SBI MF, Think Investments, BNP, Socgen, Citigroup, Morgan Stanley, Goldman Sachs, Jupiter, and Al Mehwar. Adani Enterprises aims to raise ₹20,000 crore through the FPO.
While retail investors will have the opportunity to subscribe to the FPO starting on January 27, it is worth mentioning that the share price of various Adani companies experienced a decline following allegations made by Hindenburg Research. The firm claimed that four of Adani’s listed companies are at risk of being delisted due to high promoter ownership. Additionally, it stated that five companies in the group, except for Adani Ports and Adani Wilmar, have current ratios below 1.0, indicating a short-term liquidity risk.
Adani Group has vehemently denied all allegations and accused Hindenburg Research of publishing the report with a malicious intent. Jugeshinder Singh, Chief Financial Officer of Adani Group, dismissed the report, stating that no attempt was made to reach out and verify the facts before its publication. Singh also highlighted the suspicious timing of the report’s release, suggesting it was aimed at undermining Adani Group’s reputation ahead of the FPO.
Following the retail subscription period, the basis of allotment is expected to be revealed by February 3, with funds being unblocked the next day and shares credited to demat accounts by February 5. The listing of the shares is anticipated to occur on February 8.
Despite the allegations and subsequent market reaction, Adani Enterprises’ FPO has attracted substantial interest from marquee investors, reflecting confidence in the company’s prospects. The ongoing subscription period for retail investors will provide further insight into the overall demand for shares in the follow-on public offering.
