But while the 30 per cent anchor portion of the issue was fully subscribed last week, book building saw only 3 per cent bids on Monday amid concerns over a fall in Adani’s shares.
By Tuesday, the overall share sale was fully subscribed due to flood of foreign institutional investors and corporate funds, although participation from retail investors and employees of Adani Enterprises ADEL.NS remained low.
“Investors will view the successful completion of the FPO (follow-on public offering) as a welcome relief, as it implies that the company is still backed by institutional investors,” said Leonard Law, senior credit analyst at Leuser Analytics Singapore. ” Tuesday
“The FPO will help raise the public float of Adani Enterprises (thereby partially addressing the issue of promoters’ concentrated shareholding), as well as reduce profitability for the company and improve investor sentiment,” Law said.
The offer comes days after Adani’s public face-off with Hindenburg Research flagged concerns about the group’s use of tax havens and “substantial debt” last week. It said shares of seven Adani listed companies have plunged by 85 per cent at what it termed “sky-high valuations”.