A follow-on share sale of Adani Group’s flagship company was on Monday subscribed just 3 percent on the second day.

Share Market Live

NSE

The quota for retailer investors and high networth individuals (HNIs) were subscribed 4 percent each. However, the portion for qualified institutional bidders (QIB) was booked 0 percent. The FPO closes on January 31.

Also read:

LIC’s value in Adani stocks fall by over Rs 16,000 crore, but there’s ‘no panic’

Since Tuesday's close last week, shares of Adani Total Gas tanked 39.57 percent, Adani Transmission tumbled 37.95 percent, Adani Green Energy declined 37.93 percent, Ambuja Cements went lower by 22.28 percent and Adani Ports fell 21.55 percent on the BSE.

In three days, shares of ACC tanked 18.47 percent, Adani Enterprises fell 16.38 percent, Adani Wilmar dipped 14.25 percent, Adani Power (14.24 percent) and NDTV (14.22 percent). The group firms have collectively lost over Rs 5.56 lakh crore in market valuation between Tuesday last week and Monday.

Foreign investors who picked up the shares included Abu Dhabi Investment Authority, BNP Paribas Arbitrage, Societe Generale, Goldman Sachs Investment (Mauritius) Ltd, Morgan Stanley Asia (Singapore) Pte, Nomura Singapore Ltd and Citigroup Global Markets Mauritius.

Also read: SBI says not concerned about Adani Group’s debt serviceability

A slew of domestic institutional investors, including LIC, SBI Life Insurance Company, HDFC Life Insurance Company and State Bank Of India Employees Pension Fund, also participated in the anchor book.

Out of the Rs 20,000-crore proceeds from the FPO, Rs 10,869 crore will be used for green hydrogen projects, work at the existing airports and construction of a greenfield expressway. An amount of Rs 4,165 crore will be utilised for repayment of debt taken by its airports, road and solar project subsidiaries.

Adani Enterprises is India’s largest listed business incubator and breeds businesses in four core industry sectors — energy and utility, transportation and logistics, consumer, and primary industry. The current business portfolio includes green hydrogen ecosystem, data centres, airports, digital, mining, defence and industrial manufacturing.

First Published:Jan 28, 2023 9:13 AM IST