New Delhi: Only 1% of the shares on sale under Adani Enterprises’ Rs 20,000-crore follow-on public offer (FPO) were subscribed on the first day of the offer, Friday (January 27).
“Retail investors have bought 2 percent and employees 4 percent of their allotted quota, while HNIs (non-institutional investors) have bid for 60,456 shares against the reserved portion of 96.16 lakh shares, and QIBs have bought 2,656 shares of the 1.28 crore shares set aside for them,” Moneycontrol reported.
The offer will close on January 31. After that, investors will be allowed to bid for a minimum of four shares and in multiples of four shares.
Economic Times reported that the offer documents for the FPO stated the company proposes to use Rs 4,165 crore of the issue proceeds to repay the debt owed by the company and three subsidiaries – Adani Airport Holdings, Adani Road Transport and Mundra Solar.
Seven listed companies of the Adani conglomerate have lost a total $48 billion in market capitalisation since Wednesday, bonds after short-seller Hindenburg Research published a report about the company’s worrying debt levels and use of tax havens. The report accused the company of “stock manipulation and accounting fraud”. On Friday, the group lost Rs 3.37 lakh crore in aggregate market capitalisation in a single day, Indian Express reported.
The newspaper also reported that the Life Insurance Corporation of India (LIC), which is the single largest non-promoter domestic shareholder in five of the biggest Adani Group companies by market capitalisation, lost Rs 16,627 crore on Friday just on account of decline in value of its holdings in Adani Group companies.
Gautam Adani, owner of the Adani group, slipped four places on the list of the world’s richest people, going from the third position to the seventh on Friday. His net worth dropped to $96.6 billion from $121 billion following the crash in his companies’ stock prices, Business Standard reported.