As the Hindenburg report brought the company’s stocks crashing for two days, the share's current market price went below the lower band of the ongoing FPO
Adani Enterprises’ Rs 20,000 crore worth FPO (follow-on-public offer) is still floating in the market alongside the Hindenburg Research havoc. Just hours after reports claimed of bankers reconsidering the issue price of the Adani share sale, the company has reportedly come forward and denied making any changes to the ongoing FPO.
According to a Reuters report, Adani Enterprises have claimed that the $2.5 billion share sale remains on schedule and at the planned issue price. Refuting claims of bankers considering changes to the same, Adani, in an official statement reportedly said, “There is no change in either the schedule or the issue price.”
The report goes on to add, quoting the official statement from Adani Enterprises, “All our stakeholders including bankers and investors have full faith in the FPO. We are extremely confident about the success of the FPO.”
For those not familiar with the recent developments, a Reuters report claimed that several bankers were doubting the strength of the Adani Enterprises’ FPO after the Hindenburg Research report caused a selling spree in the market. As the Hindenburg report brought the company’s stocks crashing for two days, the share's current market price went below the lower band of the ongoing FPO.
This means that, as of Friday's closing price, investors can buy Adani Enterprises share from the primary market at a discount of 11 per cent instead of subscribing to the FPO at its existing price band. This is what led to speculations that bankers might revise the price band or extend the issue period to get better attention from investors.
On Friday, the first day of the FPO, the issue was subscribed only 1 per cent, signalling that investors are wary of the Hindenburg-induced fall in Adani's stock prices.
However, refuting all such claims, the Adani Enterprises have now come forward and reportedly released a statement expressing full confidence in the success of the FPO at its original price band.