Adani FPO: According to those with direct knowledge of the situation, the follow-on share sale by Adani Enterprises Ltd. for qualified institutional buyers and non-institutional investors has been “fully subscribed.”According to those with knowledge of the situation, demand for Adani Enterprises’ follow-on offering, or FPO, of 20,000 crore on its final day exceeded 1.25 times the issue size. To be successful, the share sale must receive at least 90% in subscriptions.
A conglomerate based in Abu Dhabi will also contribute $400 million
Companies that have already gone public use FPOs to diversify their equity shareholding. Yesterday, 3% of the issue’s subscriptions were made. Last week, the anchor portion, which accounts for 30% of the FPO, was closed with money from investors like the Abu Dhabi Investment Authority. International Holding Company, a conglomerate based in Abu Dhabi, will also contribute $400 million to the project.
Adani group companies have lost more than $65 billion
Since Hindenburg Research’s January 24 report raised concerns about the group’s high debt levels and its alleged improper use of tax havens, Adani group companies have lost more than $65 billion in market value. Adani has referred to the report as unfounded. 10,869 crore of the 20,000 crore in proceeds from the FPO will be used for green hydrogen projects, airport maintenance, and building a green field motorway. To pay off debt incurred by its subsidiaries in the solar project, road, and airport sectors, at least 4,165 crore will be used.
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