$2.5bn share sale of flagship Adani Enterprises fully subscribed as Indian billionaire seeks to ease debt burden
Mumbai — Gautam Adani’s crucial $2.5bn share sale achieved a full subscription on Tuesday as investors pumped funds into his flagship Adani Enterprises, despite a scathing short-seller’s report that had pummelled the Indian billionaire’s stocks.
But on Tuesday, the overall share sale was fully subscribed as foreign institutional investors and corporates pumped in funds, though participation by retail investors and Adani Enterprises employees remained low. The offer closes days after Adani’s public face-off with Hindenburg Research, which last week flagged concerns about the use of tax havens and “substantial debt” at the group. It added that shares in seven Adani listed companies have an 85% downside due to what it called “sky-high valuations”.
Adani Group’s total gross debt in the financial year ended March 31 2022, rose 40% to 2.2-trillion rupees . Adani said on Sunday in response to Hindenburg’s allegations that over the past decade the group has “consistently de-levered”. Adani had in recent days repeatedly said investors were standing by its side and the share offering would go through. Bankers at one point had considered tweaking the pricing of the issue, or extending the sale, Reuters reported.
Adani Transmission closed nearly 4% higher on Tuesday after losing 38% since the Hindenburg report, while Adani Ports and Special Economic Zone climbed 2.6%.
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