MUMBAI: Staging an impressive comeback after a tumultuous week, the Rs 20,000-crore follow-on public offer (FPO) of Adani Enterprises was oversubscribed on the third and final day, helped by strong demand from non-institutional investors (NIIs) and qualified institutional buyers (QIBs).
It was a rough ride for India’s biggest FPO, which was hit by allegations of irregularities and high debt by the US based Hindenburg Research. Billionaire Gautam Adani-led company received bids for 5.09 crore shares against the total issue size of 4.55 crore shares, representing subscription of 112%.
The portion reserved for NIIs was oversubscribed 3.32 times as the company received bids for 3.19 crore shares against 96,16,323 shares on offer, according to BSE data. QIBs bid for 1.61 crore shares against 1.28 crore shares reserved for them, reflecting a subscription of 1.26%. As expected, the demand from retail investors was weak and they stayed away from the FPO. Retail portion was subscribed just 12%.