Adani Enterprises FPO: Issue fully subscribed on the last day with NII push

Adani FPO: The interest from retail individual investors has been low, with only 11 per cent quota subscribed

The Follow-on Public Offer (FPO) of Adani Enterprises was fully subscribed on January 31, 2023, the last day of subscription, according to data on BSE. The highest interest was seen from the Non-Institutional Investors (NIIS), who have subscribed to the issue 3.26 times their quota. According to the company's announcement, the NII portion got bids amounting to 31.3 million shares, and the highest contribution has been by family businesses of ultra-high-net individuals (UHNIs). This includes names like Ambanis, Sajjan Jindal, Sunil Mittal, Sudhir Mehta and Pankaj Patel.

The interest from retail individual investors (RIIs) has been low, with only 11 per cent subscriptions (2.5 million shares out of their quota of 22.9 million shares).

The employees have bid for 53 per cent of the shares marked for them. The data showed that the Qualified Institutional Buyers (QIBs) have bid for 126 per cent of the total shares in the category. They bid for 16.1 million shares against the 12.6 million marked for them.

The FPO was subscribed only 3 per cent by Monday. It was buoyed by the Abu Dhabi-based International Holding Company (IHC) decision to get a 16 per cent share for $400 million (Rs 3,260.8 crore).

AEL had earlier received commitments for Rs 5,985 crore from anchor investors. Maybank Securities has subscribed to shares worth Rs 2,040 crore in the anchor category, while state-owned Life Insurance Corporation of India submitted bids worth Rs 300 crore. The announcement by IHC came at a time when AEL's share price continues to languish below its FPO price.

Syed Basar Shueb, chief executive officer of IHC, said the decision to invest in the FPO was "driven by our confidence and belief in the fundamentals" of the company.

"We see strong potential for growth from a long-term perspective," he added.

The firm is issuing partly paid-up shares. Those participating in the FPO will have to pay 50 per cent now, and the balance in one or more tranches to be decided by the company over 18 months.