ADANI (THE BULL)

Adani Enterprises gained 5.26 per cent to hit a high of Rs 3,030 after Abu Dhabi's IHC said it will invest $400 million (Rs 3,200 crore) in the Adani Enterprises' FPO through its subsidiary Green Transmission Investment Holding.

Shares of Adani Enterprises jumped 5 per cent in Tuesday's trade after International Holding Company (IHC) announced Rs 3,200 crore investment in the Adani group flagship's follow-on public offer (FPO). Adani Ports & SEZ was trading flat, as the stock exchanges sought clarification from the company regarding reports suggesting Adani group was mulling a buyback proposal. Other Adani group stocks such as Adani Total Gas, Adani Green, Adani Transmission and Adani Wilmar and Adani Power extended their recent falls.

Shares of Adani Enterprises gained 5.26 per cent to hit a high of Rs 3,030 after Abu Dhabi's IHC said it will invest $400 million (Rs 3,200 crore) in the Adani Enterprises' FPO through its subsidiary Green Transmission Investment Holding. IHC said it will subscribe to 16 per cent of Adani Enterprises' $2.5 billion FPO.

The IHC announcement came, ahead of the conclusion of the issue later on Wednesday. The FPO so far received 3 percent subscription. Marketmen tracking the FPO said the issue can still sails through if the offer gets at least 90 per cent bids. The Adani group flagship is banking upon institutional and long-term strategic investors for the issue to get required subscription. It already raised Rs 5,985 crore by allotting shares to anchor investors.

In the case of Adani Ports, the stock edged 0.80 per cent lower at Rs 592.10.BSE has sought clarification from the company on a media report that suggested the Adani Group was planning a Rs 3,000 crore buyback for Ambuja Cements and Adani ports. Ambuja Cements added 2.25 per cent to Rs 396.15.

Adani Power hit its 5 per cent lower circuit at Rs 223.90. Adani Transmission fell 4.67 per cent to Rs 1,630.25. Adani Green was down 7.8 per cent at Rs 1,095.05. Adani Total Gas fell 10 per cent to Rs 2,112.90. Adani Wilmar slipped 5 per cent to Rs 466.90. Other group stock ACC was flat at Rs 1,911, ahead of quarterly earnings.

Meanwhile, NDTV fell 5 per cent to Rs 231.40.

Adani Enterprises FPO: The quota reserved for qualified institutional bidders (QIBs) was booked 1.26 times while those of non-institutional investors got 3.26 times subscription. The employee quota attracted 52 per cent bids while the quota reserved for retail investors received 11 per cent bids.

Adani Enterprises' Rs 20,000-crore follow-on public offer (FPO) gathered momentum on the final day of bidding, getting fully subscribed today. The issue, which was subscribed 1.10 times, received bids for 5,00,84,096 shares against the total offer size of 4,55,06,791 shares so far on Day 3. The quota reserved for qualified institutional bidders (QIBs) was booked 1.26 times while those of non-institutional investors got 3.26 times subscription. The employee quota attracted 52 per cent bids while the quota reserved for retail investors received 11 per cent bids.

It could be sensed that Adani Enterprises was betting big on institutions and strategic investors. Retail bids were expected to remain low as the stock price slipped below the FPO price band of Rs 3,112-3,276 per share.

Amid a slew of allegations and counter-allegations over the Hindenburg report that alleged fraud and stock manipulation at the Adani Group, stocks have seen a sharp erosion in values. That said, Adani Enterprises shares rebounded for two consecutive sessions.

The scrip rose 3.35 per cent to close at Rs 2,975. Adani Enterprises gained 6.76 per cent to hit an intraday high of Rs 3,072.95 after Abu Dhabi-based IHC announced its investment plan in the FPO. It settled 4.21 per cent higher in the previous session.

On Monday, Abu Dhabi's IHC said it would invest $400 million (around Rs 3,200 crore) in the Adani Enterprises' FPO through its subsidiary Green Transmission Investment Holding. IHC said it would subscribe to 16 per cent of Adani Enterprises' $2.5 billion FPO.

Adani Group CFO Jugeshinder Singh told Business Today TV that long-term institutional and strategic investors don't see any change in the value of Adani Enterprises after the recent drop in stock value, even as retail investors usually remain sensitive to share prices.

An issue is deemed successful if it receives at least 90 per cent subscription. Analysts said an institutional demand can give the Adani Group breathing room for adjusting oversubscription against the under subscriptions in retail and non-institutional investor categories.

Adani Enterprises' FPO committee is scheduled to meet on February 1 for the offer price approval and prospectus.

Adani Enterprises, in a filing to BSE, said in case the offer price stays lower than anchor investor's allocation price,the difference won't be funded."The Adani crisis which had impacted market sentiments will be pushed to the back burner if the FPO sails through via institutional investment," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Meanwhile, Indian equity benchmarks finished slightly higher today as gains in automobile, state-owned lenders and consumer stocks countered losses in technology, pharma and energy shares.