Adani Enterprises' Rs 20,000 crore follow-on public offer FPO has received bids for 5,59, 544 shares on Day 2 so far. The issue has received a low in shares of Adani Enterprises, and has received a tepid response. The scrip recovered some lost ground in Monday's trade, but it is still trading below the FPO price band of Rs 3,112 -- 3,276 per share.
Adani Enterprises said in a filing to the BSE that the difference won't be funded to anchor investors if the offer price is lower than the anchor investor allocation price. The FPO committee is scheduled to meet February 1 for the approval of the offer price and prospectus in relation to the offer. Adani Group CFO Jugeshinder Singh said he was confident that the Rs 20,000 crore issue will sail through and that his group was not looking to make any changes with respect to either the price band or offer period.
Singh told Business Today Television that the fund raising mechanism was carefully chosen by the group. He said that the FPO mechanism gave Adani Enterprises the flexibility to fill the book based on the total subscription, which is now led by institutional and long-term strategic book.
After the recent fall, retail investors are sensitive to share price, long-term institutional, long-term strategic investors do not see the value of Adani Enterprises.
At the time of filing this story, shares of Adani Enterprises were trading 5.33 per cent higher at Rs 2,909. The lower end of the FPO price band is the 25 against Rs 3,112.
Singh said that Adani Enterprises is not a normal company that trades on valuation parameters such as earnings multiples.
It is an incubator. Adani Enterprises incubates airports, ports, green hydrogen, data centres, Adani Wilmar, Adani Digital Labs and Adani Mining businesses. The way to access that value is through Adani Enterprises. The number of shares they can get in Adani Enterprises is something that people are interested in. The value will occur when businesses and investors start to own the same number of shares based on ratios, Singh said.