Adani’s FPO fully subscribed as high net worth individuals offset retail wariness

Retail investors, domestic funds, Adani employees shy away from bidding for shares

January 31, 2023 03:09 pm | Updated February 01, 2023 01:52 am IST - Mumbai

The Adani Group building at Adani Shantigram near Ahmedabad

The Adani Group building at Adani Shantigram near Ahmedabad | Photo Credit: Vijay Soneji

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.

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 | Warning bells: On the Adani saga

AEL shares rose 3.35% on the BSE on Tuesday to close at ₹2,975 apiece.

Top News Today

Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.