Adani Enterprises FPO fully subscribed on Day 3 of Rs 20,000 crore

Amid much drama, Adani Enterprises' Rs 20,000 crore follow-on public offer FPO sailed through on Day 3 of share sale, but saw a lack of response from retail investors, employees. The quota reserved for qualified institutional bidders QIBs was booked 1.26 times, while those of non-institutional investors received 3.26 times subscription.

The share sale of Adani Group's flagship firm was fully subscribed on Tuesday after non-retail investors bid in big volumes, according to stock exchange data.

As of available BSE data at 3: 15 pm on Tuesday, as many as 4.62 crore shares were sought against the 4.55 crore shares on offer.

After Adani Enterprises' stock was battered by US short-seller Hindenburg Research's scathing report on the conglomerate's alleged questionable operations, a lot of doubts were raised about the future of the FPO, with the share price falling below the price band fixed for the FPO, which was Rs 3,112 to Rs 3,276 per share.

Non-institutional investors put in bids for more than 96.16 lakh shares reserved for them, while the 1.28 crore shares reserved for qualified institutional buyers QIBs was almost fully subscribed, according to BSE data.

Retail investors and company employees were quiet when it came to their responses.

Retail investors, for whom about half of the issue was reserved, bid for only 11 per cent of the 2.29 crore shares that are earmarked for them. Employees sought 52 per cent of the 1.6 lakh shares reserved for them.

The FPO received a shot in the arm on Monday when the Abu Dhabi conglomerate International Holding CompanyIHC.AD said it would invest Rs 3,200 crore in the FPO.

The Abu Dhabi conglomerate is chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the UAE's national security adviser and a brother of the UAE's president. Two of its subsidiaries are among the top four companies by valuation, with a meteoric rise to dominate Abu Dhabi's stock market.