Family offices and institutions chipped in. Probably some understanding with the group (who know how to get things done). FPO subscription is important for Adani. Plus the ones who participated in the FPO may have also bought some in the open market.
Yes its important to Adani to get hands on funds so they can deleverage the company. But if they are trying to reroute the funds they will be on the loosing side isnt it or is there a possibility of quid-pro-quo
I saw an interview, where this question was asked, the answer given was, institution who buy through the fPO route, buy in huge quantities which cannot be met in the cash market. Hence these institution to get allocation which would be sizable would have gone the FPO route. Also the quid pro quo angle will always be there.
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The FPO was fully subscribed at 1.10 times as of 3.39 pm on Jan 31.
- Institutional investors: 1.26 times.
- Non-institutional investors: 3.26 times.
- Retail investors: 0.11 times.
- Employees: 0.53 times.
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Although I am able to relate to this. A 10% premium seems too much. To manage this volume - spread issues only generally FPOs are offered at a discount to SPOT (callback to FPO priced at 3112-32xx when SPOT was around 36xx) but for the same reason the opposite happening is somewhat not digestable.
Personally I feel most of the bids are Quid Pro Quo type bids from QIBs. Anyway lets see what happens tomorrow along with a budget day.
Looks like Hindenbergās research was correct.
Adani himself lost confidence in his companies. LOL.
Also Adani should not defame India. Very shameful.