Adani Enterprises FPO anchor book draws Rs6,000 cr from investors

Adani Enterprises (AEL), flagship of the Adani Group,on Wednesday raised 5984.9 crore from 33 overseas and home institutional investors together with the likes of Singapore primarily based Maybank Securities Pte Ltd, insurance coverage behemoth LIC, SBI Employees Pension Fund, SBI Life Insurance Co, HDFC Life Insurance Co, Abu-Dhabi-based sovereign wealth fund ADIA, Goldman Sachs Investment and Morgan Stanley Asia who bid for the anchor portion of the 20,000 crore follow-on public supply by the corporate.

The anchor portion of the FPO, which can open for retail investors later this week, was oversubscribed round 1.5-2 occasions, in accordance with folks conscious of the event. The oversubscription for the anchor book got here on a day when quick vendor Hindenburg raised considerations over the Adani group’s debt place, leading to steep losses in a number of Adani group shares.

The FPO will run from January 27-31.  

 “The FPO Committee of the Board of Directors of the Company…. .in session with… (the “Book Running Lead Managers”) have finalized allocation of 1,82,68,925 FPO Equity Shares in aggregate, to the Anchor Investors at the Anchor Investor Allocation Price of Rs. 3,276/- per FPO Equity Share…”

Anchor investors have paid half of the 5984.9 crore, or 1638 per share comprising round 2992.45 crore, with the steadiness quantity of 1638 per FPO share being payable at a number of calls by the corporate board.  

Singapore primarily based Maybank Securities Pte is the largest investor, accounting for 34.09% of the anchor portion, with a complete bid worth of 2040 crore. Other giant investors included NBFC Winro Commercial (India) which was allotted shares value 334.99 crore, ELM Park Fund ( 339 crore), LIC ( 299.99 crore), ADIA ( 153.42 crore), SBI EPF ( 99.99 crore), SBI Life (124.99 crore), BNP Paribas Arbitrage ( 250 crore), Societe Generale ( 100 crore), Goldman Sachs Investment ( 146 crore) and Morgan Stanley Asia (Singapore) 82 crore. The share of AEL ended down a p.c and a half at 3388.95 apiece on Wednesday forward of the allocation particulars to the anchor investors. The inventory has gyrated between a 52-week high-low of 4190-1528.8.  

There will probably be a lock-in of 90 days on 50% of the FPO shares allotted to anchor investors from the date of allotment and one other 30 days on the remaining 50% shares from the allotment date.  

 “The FPO goals to maximise retail and HNI classes as they’re inter -generational investors in contrast to MFs or DIIs who’ve a a lot shorter time horizon for investments,” Jugishender “Robbie” Singh, Adani Group CFO, advised Mint earlier.  

Post the 20000 crore FPO retail investor holding in AEL will improve from round 1.4% to round 3.6%, he added.

Queried on steep valuations of his group firms changing into a probable roadblock for retail investors , Singh stated , “ High fairness valuations suggest that folks worth our progress and  this reduces our threat premium which in flip will increase the worth of our utility enterprise.”

To draw retail investors, the company will give an added discount of 64 per partly paid up share from the cut-off price. The price range of the FPO, running through January 27-31,  has been fixed between 3112 and 3276.


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