The mega Rs 20,000-crore share sale by Limited hit a speed breaker after the massive sell-off in stocks triggered by US-based Hindenburg Research’s report.
The follow-on public offer (FPO) received muted response across investor categories. The total issue was subscribed just 1% on Friday, data on the BSE website showed.
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.
High networth individuals (HNIs) bid for 60,456 shares against the portion of 96,16,323 shares set aside for them.
Response from qualified institutional investors was the weakest. In this category, the company got bids for just 2,656 shares against 1,28,21,336 shares on offer.
Ahead of the FPO, the conglomerate raised close to Rs 6,000 crore from over 30 institutional investors, including prominent names such as Abu Dhabi Investment Authority (ADIA), Al Mehwar Investments, Citigroup Global, Morgan Stanley, Goldman Sachs, , , and Pension Fund.The price band for the FPO is Rs 3,112-3,276 a share. However, the sell-off in the stock in the open market pulled down the price way below the price band. The stock ended 18.3% lower on the NSE at Rs 2,768.50. This is about 10% lower than the floor price of the FPO.
Intraday, the stock hit a 5-month low of Rs 2,712, triggered by the negative report of Hindenburg Research, that alleged corporate misgovernance, stock price manipulation and high leverage of the group.
The diversified conglomerate, led by Gautam Adani, threatened the American short-seller Hindenburg Research with remedial and punitive action in both US and Indian courts.
Describing Hindenburg’s report as maliciously mischievous and unresearched, the company said it is deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage Adani Enterprises’ FPO.
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