A week ago, the market eagerly awaited India’s largest follow-on public offer (worth ₹20,000 crore) from one of the country’s biggest conglomerates, Adani Enterprises. Investors eagerly awaited the opportunity to buy shares at a discounted price.
On January 23, 2023, Adani Enterprises’ shares were trading at ₹3,434.50. The FPO price range was set at ₹3,112 to ₹3,276 per share, with a discount of ₹64 per share offered to retail investors.
On January 25, Adani raised ₹5,984.9 crore from 33 institutional investors, including Maybank Securities, LIC, SBI Employees Pension Fund, HDFC Life Insurance, ADIA, Goldman Sachs, and Morgan Stanley Asia.
Just as the company was celebrating high demand, Hindenburg Research accused Adani of fraud and disclosed short positions in the stock, causing Adani Enterprises and 6 other Adani group stocks to plummet.
Adani has since been in damage control mode, with CFO Jugeshinder “Robbie” Singh denying the allegations in public. He stated: “Expecting no kicks in a kickboxing match is a false assumption. These things happen and we are prepared for it. It hasn’t changed anything.”
This was done to ensure a successful FPO, which opened for bidding on January 27 and closed today.
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