MUMBAI: The success of Adani Enterprises Rs 20,000 crore follow-on-offer (FPO) will be remembered as the story of how Indian Inc stood behind Gautam Adani-led conglomerate that faced serious allegations from US based Hindenburg Research.
Family offices of prominent Indian business families, HNIs and corporate poured in Rs 5,000 crore, which played a crucial role in helping the FPO to steer out of the controversy created by the New York-based based short-seller, which has earlier targeted global companies such as car maker Nikola, Twitter. Names of many big industrial houses have emerged as investors to this mega offer.
On the third and final day of the mega share sale, the Non-Institutional Investors (NIIs), which included Indian corporates, business families and Ultra HNIs stole the show as they bid for 3.19 crore share, against 96.16 lakh shares reserved for them, representing 3.32 times subscription. Family offices are entities created by HNIs to manage their investments.
NII investors who invested more than Rs 10 lakh worth of shares saw oversubscription of 4.97 times bidding for 3.19 crore shares even though the shares available for them were 64.11 lakh. In the Rs 2-10 lakh category, corporates, individuals (other than retail investors) and others bid for 75,696 shares. In the Rs 10 lakh plus category, Corporates bid for 1.67 crore shares.
From securing just 1% subscription from investors on its opening day on Friday, to getting oversubscribed on Tuesday, the FPO has went through several ups and downs. The mood was sombre among Book Running Lead Managers as the FPO could get only 3% subscription on the second day of subscription. However, the support from Indian corporate on the final day ensured that FPO was fully subscribed on the final day.
Out of the Rs 5,000 crore, Indian corporates have bid for Rs 2,613 crore on the last day. AEL had last week received commitments for Rs 5,985 crore from anchor investors. Major foreign institutional investors like Abu Dhabi Investment Authority (ADIA), Maybank Asia, Goldman Sachs, Nomura, Societe Generale, Jupiter, BNP Paribas, Al Mehwar, Citi group, Morgan Stanley picked up the stake.
Top domestic investors such as SBI Employee Pension Fund, HDFC Life, Life Insurance Corporation of India, SBI Life and other salient names like MK Ventures were also a part of the anchor book. Maybank was allocated 34.09% of the 1.83 crore shares reserved for institutional investors for Rs 204 crore, while ADIA got 2.56% worth Rs 153 crore. Goldman Sachs Investment lifted 4,45,664 shares worth nearly Rs 145.9 crore.