Adani Group excludes changes in price, dates for sale of new shares

Adani Enterprises is selling shares in a price range of Rs 3,112 to Rs 3,276.

New Delhi:

Billionaire Gautam Adani’s group on Saturday ruled out any change in the price or dates of the Rs 20,000 crore follow-on share sale at the conglomerate̵[ads1]7;s flagship despite the shares being hammered below the offer price following a scathing report by a US short seller.

“Adani Enterprises Limited’s further public offering (FPO) is proceeding as per the schedule and price band announced. There is no change in the plan for the issue price,” a group spokesperson said.

FPO was subscribed to only one percent on the opening day, Friday. Against an offer of 4.55 crore shares in Adani Enterprises Ltd, only 4.7 lakh shares were subscribed, according to information available from BSE.

Adani Enterprises fell almost 20 percent below its secondary offer price as all seven listed companies in the conglomerate took a beating in the wake of Hindenburg Research which alleged the group “engaged in a brazen stock manipulation and accounting fraud scheme spanning decades”.

The group has rejected the report as malicious and false aimed at torpedoing the FPO.

Adani Enterprises is selling shares in a price range of Rs 3,112 to Rs 3,276. On Friday, the share price closed at Rs 2,762.15 on the BSE.

“All our stakeholders including bankers and investors have full faith in the FPO. We are extremely confident of the success of the FPO,” the spokesperson added.

FPO closes on 31 January.

On Wednesday, Adani Enterprises raised Rs 5,985 crore from anchor investors.

The company allotted 1.82 crore shares to 33 funds at Rs 3,276 apiece, taking the transaction size to Rs 5,985 crore, according to a circular uploaded on the BSE website.

Foreign investors who picked up the shares include Abu Dhabi Investment Authority, BNP Paribas Arbitrage, Societe Generale, Goldman Sachs Investment (Mauritius) Ltd, Morgan Stanley Asia (Singapore) Pte, Nomura Singapore Ltd and Citigroup Global Markets Mauritius.

A number of domestic institutional investors including LIC, SBI Life Insurance Company, HDFC Life Insurance Company and State Bank Of India Employees Pension Fund also participated in the anchor book.

Of the Rs 20,000 crore revenue from the FPO, Rs 10,869 crore will be used for green hydrogen projects, work on existing airports and construction of a highway.

An amount of Rs 4,165 crore will be used for repayment of debt taken by the airports, road and solar project subsidiaries.

Adani Enterprises is India’s largest listed business incubator and breeds businesses in four core industry sectors – Energy & Utilities, Transport & Logistics, Consumer & Primary Industries.

The current business portfolio includes green hydrogen ecosystems, data centers, airports, digital, mining, defense and industrial manufacturing.

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)