Adani investors rally to $2.5 billion share sale

MUMBAI, JAN 31 (AGENCIES): Gautam

Adani’s crucial $2.5 billion share sale was fully subscribed on Tuesday as investors pumped funds into his flagship firm, despite a $65 billion rout in the Indian billionaire’s stocks sparked by a shortseller’s report. The fundraising is critical for Adani, not just because it will help cut his group’s debt, but also because it is being seen by some as a gauge of confidence at a time when the tycoon faces one of his biggest business and reputational challenges, reports Reuters.

Hindenburg Research’s report last week alleged improper use of offshore tax havens and concerns about high debt, which Adani denied, but the subsequent market meltdown has led to a dramatic and sudden fall in his fortunes as he slipped to eighth from third in Forbes rich list rankings.

India’s largest ever secondary share sale attracted participation from anchor investors including Maybank Securities and Abu Dhabi Investment Authority, as well as India’s HDFC Life Insurance and state-backed Life Insurance Corporation (LIFI.NS).

But while the 30% anchor portion of the issue had been subscribed fully last week, the book building had only 3% in bids on Monday, amid concerns over the rout in Adani’s stocks.

By Tuesday the overall share sale was fully subscribed as foreign institutional investors and corporate funds flooded in, although participation by retail investors and Adani

AdaniFPOsailsthroughwith helpfromfellowindustrialists

Billionaire Gautam