What Is a Follow-on Public Offer (FPO)?
A follow-on public offering (FPO) is the issuance of shares to investors by a company listed on a stock exchange. A follow-on offering is an issuance of additional shares made by a company after an initial public offering (IPO). Follow-on offerings are also known as secondary offerings.
Adani Enterprises to raise up to ₹20,000 cr through FPO..!
Adani Enterprises Ltd., the flagship company of billionaire Gautam Adani, is preparing to conduct a follow-on public offering (FPO) to raise money for the group's growth into the green and digital industries. Since being listed in 1994, Adani Enterprises has expanded its footprint in infrastructure sectors that need significant capital investments, including airports, ports, mining, agriculture, data centres, defence, cement, and warehousing
He may raise ₹10,000-20,000 crore through the FPO. Two objectives are the focus of the fundraising. One is to raise money for new ventures like green hydrogen, data centres, and renewable energy; the other is to increase the company's stock market float by attracting a variety of new investors. The International Holding Company (IHC), one of the key Gulf-based sponsors of the Adani group, is likely to be among the biggest purchasers of the FPO. The stock price of Adani Enterprises, the group's core business entity and the possession of Gautam Adani, Asia's richest man, has increased 18 times in the last five years.
IHC is specifically aiming to become the one and only investor by investing Rs 2,000 crore and Rs 2,800 crore to acquire roughly 10-15% of the issue. If it purchases that much, IHC will also overtake all other foreign investors as Adani Enterprises' largest non-promoter stakeholder. Adani Enterprises is also thinking about offering retail subscribers a discount. Retail investors will need to have access to at least 35% of the FPO, which may be worth up to Rs 7,000 crore. Later this month, the FPO is anticipated to launch.
Comments
Post a Comment