Despite muted response from retail investors, Adani Enterprises says FPO on track
Mumbai: Adani Enterprises has maintained that its Rs 20,000 crore Follow on Public Offer (FPO) is well on track despite a muted response across investor categories amid a market rout in the group’s share.
According to Reuters, bankers involved with the issue were considering extending the sale or cutting the issue price after shares of Adani tumbled following a report from U.S. short-seller Hindenburg Research.
Adani Group in a statement said: "There is no change in either the schedule or the issue price."
"All our stakeholders including bankers and investors have full faith in the FPO (Follow on Public Offer). We are extremely confident about the success of the FPO," it said.
On Friday, the price band for the FPO is Rs 3,112-3,276 a share but the sell-off in the stock in the open market pushed the price way below the price band, ET reported.
Friday's 20% fall in shares of group flagship Adani Enterprises dragged it 11% below the minimum offer price of the secondary sale, said the Reuters report.
On the first day of retail bidding on Friday, only 1% of the total issue was subscribed, raising concerns over whether it would be able to proceed.
According to an Economic Times report, the company received total bids of 4,70,160 shares against the issue size of 4,55,06,791 shares.