Gautam Adani’s crucial USD 2.5 billion (Rs 20,000 crore) 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 billionaire’s stocks. As many as 4.62 crore shares were sought as against an offer of 4.55 crore.

Non-institutional investors put in bids for over three times the 96.16 lakh shares reserved for them, while the 1.28 crore shares reserved for qualified institutional buyers was almost fully subscribed, as per BSE data. There was, however, muted response from retail investors and company employees.

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Retail investors, for whom roughly half of the issue was reserved, bid for just 11 per cent of the 2.29 crore shares earmarked for them. Employees sought 52 per cent of the 1.6 lakh shares reserved for them. 

The share sale is critical for Adani, not just because it will help cut his group’s debt, but also because its success will be seen as a mark of investor confidence as he faces one of his biggest business and reputational challenges. 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.

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