Adani group fpo

The ₹20,000 crore follow-on public offer from Adani Enterprises Ltd. (AEL) was fully subscribed on the last day of the record share sale on Tuesday, after high net worth individuals and institutional investors bid strongly and more than made up for a poor to tepid response from retail investors and employees. The successful conclusion of the Adani Group flagship company’s FPO will come as a major relief to its promoters led by India’s richest individual Gautam Adani in the wake of a U.S.-based short seller’s allegations of accounting irregularities and stock manipulation at the group which led to a three-session rout in the conglomerate’s shares. Gautam Adani no longer among world’s top 10 richest people The FPO finally received bids for 1.12 times the 4.55 crore shares on offer, according to cumulative demand data on the BSE website. While Qualified Institutional Bidders (QIBs) led by FIIs sought 1.26 times the shares offered to them as a category, Non Institutional Investors (NIIs) bid for 3.32 times the stock reserved for them as a class, with NIIs placing a bid exceeding ₹10 lakh seeking to buy 4.97 times the shares offered to them. Conspicuously, retail individual investors bid for just a little more than one tenth (0.12) the number of shares offered to them and employees bid for 55% of the shares reserved for them. Mutual funds completely avoided the share sale. Also Read | AEL shares rose 3.35% on the BSE on Tuesday to close at ₹2,975 apiece.

• Adani group says it has made full prepayment of margin-linked share backed financing before the deadline. • The group's stocks crashed after the Hindenburg report but has recovered in recent times. • The group says it has since changed capex plans, given up on acquisitions and also raised funds. Adani group on Monday said that it made full prepayment of margin linked share backed financing totalling $2.15 billion before 12 March, well in advance of the 31st March 2023 timeline. The promoters also prepaid $700 million debt taken for the Ambuja Cement acquisition. The credit update also said that the company’s net debt-to-EBITDA ratio decreased from 3.81 in FY22 to 3.27 in FY23. Its leverage has been a key investor concern ever since US-based research firm Hindenburg came out with a report against the group, alleging stock manipulation and accounting fraud in addition to pointing out that its debt levels were too high. Here is a timeline of the Adani-Hindenburg saga The ‘damning report’ On January 24, 2023, Hindenburg Research released its report 'How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History'. It alleged that the group has undertaken questionable practices – asking 88 questions on the group’s source of funds, offshore entities and more. It also said it has taken short positions on the group’s stocks. Stock crash Stocks of all the nine companies of the group went into a freefall after the report was released — losing as much as ₹1 lakh cro...

MUMBAI : The Adani group faces a formidable challenge as its ₹20,000 crore follow-on public offer (FPO) struggles to gain momentum amid a plunge in group company stocks that erased ₹4.4 trillion of investor wealth over two days. The FPO received bids for only 470,000 shares, or just 1% of the shares on offer, on Friday, the first day of the three-day share sale. Despite the situation, the group is moving ahead with its FPO. In an interview on Sunday, Adani group chief financial officer Jugeshinder Singh said, “Our objective remains, one, to highlight to stakeholders and investors that the report is just a collection of misrepresentations and, secondly, to continue with the FPO." Goes ahead with the current deal: If Adani sticks to its stance, it needs to ensure that the offer is at least 90% subscribed for it to succeed. Oversubscription in the non-institutional/HNI and retail investor categories can’t be adjusted for under-subscription in the institutional category. However, oversubscription in the institutional category can be allocated against subscriptions in other categories. Thus, a strong oversubscription in the institutional category will be key. “Considering that only 50% of the offer price is to be paid upfront, the deal needs to generate a demand of ₹10,000 crore as of now. QIB (qualified institutional buyer) being 50% of the deal means an institutional book size of ₹5,000 crore, of which ₹3,000 crore approx has already been raised from the anchor book, leaving ...

The Adani Group’s Rs 20,000 crore follow-on public offer (FPO) was in jeopardy after the Hindenburg report was released, just prior to the IPO. As a result, not only did the shares fall by 30 per cent, but the offer which opened on 25 January, only saw a three per cent subscription by 30 January. Even after Adani’s reply to the Hindenburg report, investors appeared unconvinced. After Adani’s response to Hindenburg’s allegations, Hindenburg said the company had only confirmed its key points, while not clarifying on some of the important issues. However, Hindenburg is incentivised to criticise companies and managements, hence, reading too much into its opinions wouldn’t offer a balanced picture. The Adani Group refused to reduce the offer price for FPO. An Abu Dhabi-based fund IHC, said that it would be investing $400 million in the FPO. It appeared that the decision was correct since on the last day, the FPO was fully subscribed by investors. After the FPO was fully subscribed, the company said it would be wrong to accept investor money at a premium to the current stock price, and returned the money to investors. After the late-night announcement, the group’s shares fell further during the morning session on Thursday (2 February). Why Did The Company Accept Funds Only To Return Them? One possible explanation is that the company expected share prices to rise once again after their reply to the Hindenburg report, and expected to regain investors’ faith. Hence, it decided to c...

MUMBAI : The Adani group faces a formidable challenge as its ₹20,000 crore follow-on public offer (FPO) struggles to gain momentum amid a plunge in group company stocks that erased ₹4.4 trillion of investor wealth over two days. The FPO received bids for only 470,000 shares, or just 1% of the shares on offer, on Friday, the first day of the three-day share sale. Despite the situation, the group is moving ahead with its FPO. In an interview on Sunday, Adani group chief financial officer Jugeshinder Singh said, “Our objective remains, one, to highlight to stakeholders and investors that the report is just a collection of misrepresentations and, secondly, to continue with the FPO." Goes ahead with the current deal: If Adani sticks to its stance, it needs to ensure that the offer is at least 90% subscribed for it to succeed. Oversubscription in the non-institutional/HNI and retail investor categories can’t be adjusted for under-subscription in the institutional category. However, oversubscription in the institutional category can be allocated against subscriptions in other categories. Thus, a strong oversubscription in the institutional category will be key. “Considering that only 50% of the offer price is to be paid upfront, the deal needs to generate a demand of ₹10,000 crore as of now. QIB (qualified institutional buyer) being 50% of the deal means an institutional book size of ₹5,000 crore, of which ₹3,000 crore approx has already been raised from the anchor book, leaving ...

The Adani Group’s Rs 20,000 crore follow-on public offer (FPO) was in jeopardy after the Hindenburg report was released, just prior to the IPO. As a result, not only did the shares fall by 30 per cent, but the offer which opened on 25 January, only saw a three per cent subscription by 30 January. Even after Adani’s reply to the Hindenburg report, investors appeared unconvinced. After Adani’s response to Hindenburg’s allegations, Hindenburg said the company had only confirmed its key points, while not clarifying on some of the important issues. However, Hindenburg is incentivised to criticise companies and managements, hence, reading too much into its opinions wouldn’t offer a balanced picture. The Adani Group refused to reduce the offer price for FPO. An Abu Dhabi-based fund IHC, said that it would be investing $400 million in the FPO. It appeared that the decision was correct since on the last day, the FPO was fully subscribed by investors. After the FPO was fully subscribed, the company said it would be wrong to accept investor money at a premium to the current stock price, and returned the money to investors. After the late-night announcement, the group’s shares fell further during the morning session on Thursday (2 February). Why Did The Company Accept Funds Only To Return Them? One possible explanation is that the company expected share prices to rise once again after their reply to the Hindenburg report, and expected to regain investors’ faith. Hence, it decided to c...

• Adani group says it has made full prepayment of margin-linked share backed financing before the deadline. • The group's stocks crashed after the Hindenburg report but has recovered in recent times. • The group says it has since changed capex plans, given up on acquisitions and also raised funds. Adani group on Monday said that it made full prepayment of margin linked share backed financing totalling $2.15 billion before 12 March, well in advance of the 31st March 2023 timeline. The promoters also prepaid $700 million debt taken for the Ambuja Cement acquisition. The credit update also said that the company’s net debt-to-EBITDA ratio decreased from 3.81 in FY22 to 3.27 in FY23. Its leverage has been a key investor concern ever since US-based research firm Hindenburg came out with a report against the group, alleging stock manipulation and accounting fraud in addition to pointing out that its debt levels were too high. Here is a timeline of the Adani-Hindenburg saga The ‘damning report’ On January 24, 2023, Hindenburg Research released its report 'How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History'. It alleged that the group has undertaken questionable practices – asking 88 questions on the group’s source of funds, offshore entities and more. It also said it has taken short positions on the group’s stocks. Stock crash Stocks of all the nine companies of the group went into a freefall after the report was released — losing as much as ₹1 lakh cro...

The ₹20,000 crore follow-on public offer from Adani Enterprises Ltd. (AEL) was fully subscribed on the last day of the record share sale on Tuesday, after high net worth individuals and institutional investors bid strongly and more than made up for a poor to tepid response from retail investors and employees. The successful conclusion of the Adani Group flagship company’s FPO will come as a major relief to its promoters led by India’s richest individual Gautam Adani in the wake of a U.S.-based short seller’s allegations of accounting irregularities and stock manipulation at the group which led to a three-session rout in the conglomerate’s shares. Gautam Adani no longer among world’s top 10 richest people The FPO finally received bids for 1.12 times the 4.55 crore shares on offer, according to cumulative demand data on the BSE website. While Qualified Institutional Bidders (QIBs) led by FIIs sought 1.26 times the shares offered to them as a category, Non Institutional Investors (NIIs) bid for 3.32 times the stock reserved for them as a class, with NIIs placing a bid exceeding ₹10 lakh seeking to buy 4.97 times the shares offered to them. Conspicuously, retail individual investors bid for just a little more than one tenth (0.12) the number of shares offered to them and employees bid for 55% of the shares reserved for them. Mutual funds completely avoided the share sale. Also Read | AEL shares rose 3.35% on the BSE on Tuesday to close at ₹2,975 apiece.

• Adani group says it has made full prepayment of margin-linked share backed financing before the deadline. • The group's stocks crashed after the Hindenburg report but has recovered in recent times. • The group says it has since changed capex plans, given up on acquisitions and also raised funds. Adani group on Monday said that it made full prepayment of margin linked share backed financing totalling $2.15 billion before 12 March, well in advance of the 31st March 2023 timeline. The promoters also prepaid $700 million debt taken for the Ambuja Cement acquisition. The credit update also said that the company’s net debt-to-EBITDA ratio decreased from 3.81 in FY22 to 3.27 in FY23. Its leverage has been a key investor concern ever since US-based research firm Hindenburg came out with a report against the group, alleging stock manipulation and accounting fraud in addition to pointing out that its debt levels were too high. Here is a timeline of the Adani-Hindenburg saga The ‘damning report’ On January 24, 2023, Hindenburg Research released its report 'How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History'. It alleged that the group has undertaken questionable practices – asking 88 questions on the group’s source of funds, offshore entities and more. It also said it has taken short positions on the group’s stocks. Stock crash Stocks of all the nine companies of the group went into a freefall after the report was released — losing as much as ₹1 lakh cro...

The ₹20,000 crore follow-on public offer from Adani Enterprises Ltd. (AEL) was fully subscribed on the last day of the record share sale on Tuesday, after high net worth individuals and institutional investors bid strongly and more than made up for a poor to tepid response from retail investors and employees. The successful conclusion of the Adani Group flagship company’s FPO will come as a major relief to its promoters led by India’s richest individual Gautam Adani in the wake of a U.S.-based short seller’s allegations of accounting irregularities and stock manipulation at the group which led to a three-session rout in the conglomerate’s shares. Gautam Adani no longer among world’s top 10 richest people The FPO finally received bids for 1.12 times the 4.55 crore shares on offer, according to cumulative demand data on the BSE website. While Qualified Institutional Bidders (QIBs) led by FIIs sought 1.26 times the shares offered to them as a category, Non Institutional Investors (NIIs) bid for 3.32 times the stock reserved for them as a class, with NIIs placing a bid exceeding ₹10 lakh seeking to buy 4.97 times the shares offered to them. Conspicuously, retail individual investors bid for just a little more than one tenth (0.12) the number of shares offered to them and employees bid for 55% of the shares reserved for them. Mutual funds completely avoided the share sale. Also Read | AEL shares rose 3.35% on the BSE on Tuesday to close at ₹2,975 apiece.