Hindenburg Research Report fallout: FPO on track, no price band change, says Adani Group

Mumbai: Adani Enterprises on Saturday said its follow-on public offer (FPO) will continue as per schedule without any changes in the price band, quelling speculation about changes being made after a tepid investor reception on the first day.

The issue runs January 27-31. “There is no change in either the schedule or the issue price,” said an Adani Group spokesperson on Saturday. “All our stakeholders, including bankers and investors, have full faith in the FPO. We are extremely confident about the success of the FPO. ”

The Rs 20,000-crore Adani Enterprises FPO, which opened on Friday, received bids for about 1% of the shares on offer, after allegations of governance lapses and price “manipulation” by US activist short-seller Hindenburg Research triggered panic selling in shares of the conglomerate’s companies.


Analysts said most investors refrained from applying for the FPO after Adani Enterprises shares plunged below the lower end of the issue price band of Rs 3,112-3,276. Adani Enterprises dropped 18. 52% to close at Rs 2,762. 15 on the BSE on Friday. The fall in the stock price had sparked talk that the company may consider cutting the price band, or even extending the FPO closing date of January 31.

Of the 45. 5 million shares on offer, investors put in bids for 470,000 shares on Friday.

Investor Break-up

The FPO received subscriptions for 400,000 shares, or 2%, in the retail investor category. The non-institutional investor category — including high net worth individuals (HNIs) and corporates — got bids for 60,456 shares, or 1%, while institutional investors bid for 2,656 shares. Adani Enterprises will offer partly paid shares to retail investors at a discount of Rs 64 to the issue price. Investors must pay 50% of the offer price when placing bids and the remaining on one or more subsequent calls, as decided by the board.

Late on Wednesday, Adani Enterprises raised Rs 5,985 crore from anchor investors ahead of the FPO by allotting 18.3 million shares at Rs 3,276 each to 33 institutional investors.