BANGALORE, Jan. 31 (Reuters) – Gautam Adani’s $2.5 billion stake sale fully subscribed on Tuesday as investors put money into his flagship Adani Enterprises Ltd. (ADEL.NS) Despite scathing reports of short sales beating shares of the Indian billionaire group.
A subsequent public offering (FPO) was important to Adani not only because it would help reduce the group’s debt, but its success would come as he faces one of his biggest business and reputational challenges. Because it is seen as a sign of the confidence of investors who are recently.
Commentary
SAURABH JAIN, Assistant Vice President, Research, SMC Global Security, New Delhi
“We feel that the subscription to this issue just shows that investors have faith and faith in Adani Group and that they believe in its growth story. When it comes down to it, the company will continue on its growth path.
ARUN KEJRIWAL, FOUNDER OF KEJRIWAL RESEARCH AND INVESTMENT SERVICES
“The 3-day subscriptions behind Hindenburg’s report are very noteworthy. The only color of disappointment is that retail subscriptions did not materialize. Market price and FPO price floor. Individual. Investors don’t seem to take into account the fact that there is more to it than just the price.”
LEONARD LAW, SENIOR CREDIT ANALYST, LUCROR ANALYTICS, SINGAPORE
“Investors will see the successful completion of the FPO as a welcome relief as it means the company still has the support of institutional investors. The FPO expands the public offering of Adani Enterprises. (thereby partially addressing the problem of promoters’ concentrated investment in equity holdings), and reducing firm leverage and improving investor sentiment for the wider group.
“Having said that, knowing the identity of subscribers would be useful given concerns over investments by offshore shell companies.”
RUCHIT JAIN, Lead Research Analyst at 5PAISA.COM
“It looks good that the over-the-top fears have finally subsided. This should bring confidence back to Adani Group’s stock and the broader market.”
Reported by Anshuman Daga from Singapore, Ankika Biswas from Bangalore and Rama Venkat from Bangalore. Edited by Savio D’Souza
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