Gautam Adani's discount share sale tries to woo public, silence critics

The share sale 'allows us to increase the participation of the Indian public. Every household of rural India can invest in it'

Bhuma Shrivastava and P R Sanjai | Bloomberg


Indian tycoon Gautam Adani, who added $40 billion to his wealth last year after a blistering stock rally, wants validation from the investing public and critics who question the forces pushing up his companies’ share prices.
To woo mom-and-pop investors to buy into his ports-to-power empire’s flagship, Adani Enterprises Ltd. will sell new shares at a discount and allow payments in three installments when it rolls out its $2.5 billion follow-on offer later this month — an unprecedented move for one of the country’s hottest stocks. For a stock that has rallied over 1,400% since early 2020, sweeteners are crucial to woo retail investors. 

The country’s biggest follow-on share sale serves many ends. A diversified shareholder base gives greater credibility in the stock market and cements Adani’s legacy as a wealth creator for millions of investors, not just himself. A bigger constituency of shareowners may trigger more analys


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First Published: Jan 20 2023 | 11:02 AM IST

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