Adani’s $2.5 billion share sale is facing a crucial day after the offering was met with a rout in the market. This share sale has been closely watched, as it could be one of India’s biggest ever public offerings and would provide much-needed funds for Adani’s infrastructure projects.
However, Indian regulations state that if any such offering does not receive minimum subscription of 90%, then the issuer must refund all money received from investors during this period. As such, today will determine whether or not Adani can secure enough investments to push forward its plans for further development within India and beyond its borders.
The company has already raised over $1 billion in pre-IPO subscriptions from anchor investors like Abu Dhabi Investment Authority (ADIA), SBI Mutual Fund and HDFC Mutual Fund among others; however, these commitments may still fall short of meeting their target by 10%. If this happens to be true then all money invested so far will have to be returned back to those who had subscribed before today’s deadline expires at midnight tonight – making it an important day indeed for Adani Group’s future prospects in terms of fundraising through equity markets.