NEW DELHI: Mumbai: Support from high networth investors ensured India’s biggest follow-on public offering (FPO), the Rs 20,000-crore Adani Enterprises’ (AEL) issue, achieved full subscription on the last day of bidding. However, there was a tepid response from retail investors and employees.
The flagship of the Adani Group received total bids for 5.1 crore shares, against the offer size of 4.6 crore shares, on January 31, the third and final day of retail bidding, representing a 112% subscription. This excludes the Rs 5,985-crore anchor book, a part of the QIB portion, that was completely subscribed a day before the FPO had opened on January 28.

The high networth individuals’ (HNIs) portion was subscribed 332%, with bidding for 3.2 crore shares, against the 96 lakh shares that were reserved for this category. Within HNIs, the part reserved for ultra HNIs was subscribed nearly five times, which included family offices of India Inc, market sources said. Retail investors and AEL employees’ categories were subscribed 12% and 55%, BSE data showed. There was a muted response from retail investors as AEL’s stock was available below the FPO price band of Rs 3,112-Rs 3,276 a share, market watchers said. AEL had offered a discount of Rs 64 to retail investors. On Tuesday, the AEL stock on BSE closed at Rs 2,975, up 3.4% over the previous close but still at a 4% discount to the lower band of the FPO price of Rs 3,112.
New Delhi: Mumbai: Support from high networth investors ensured India’s biggest follow-on public offering (FPO), the Rs 20,000-crore Adani Enterprises’ (AEL) issue, achieved full subscription on the last day of bidding. However, there was a tepid response from retail investors and employees.
The flagship of the Adani Group received total bids for 5.1 crore shares, against the offer size of 4.6 crore shares, on January 31, the third and final day of retail bidding, representing a 112% subscription. This excludes the Rs 5,985-crore anchor book, a part of the QIB portion, that was completely subscribed a day before the FPO had opened on January 28.
The high networth individuals’ (HNIs) portion was subscribed 332%, with bidding for 3.2 crore shares, against the 96 lakh shares that were reserved for this category. Within HNIs, the part reserved for ultra HNIs was subscribed nearly five times, which included family offices of India Inc, market sources said. Retail investors and AEL employees’ categories were subscribed 12% and 55%, BSE data showed. There was a muted response from retail investors as AEL’s stock was available below the FPO price band of Rs 3,112-Rs 3,276 a share, market watchers said. AEL had offered a discount of Rs 64 to retail investors. On Tuesday, the AEL stock on BSE closed at Rs 2,975, up 3.4% over the previous close but still at a 4% discount to the lower band of the FPO price of Rs 3,112.
Republished. Link to Original Article: https://timesofindia.indiatimes.com/business/india-business/big-ticket-investors-ensure-adani-fpo-112-subscribed/articleshow/97503361.cms