- Date : 25/01/2023
- Read: 3 mins
Adani Enterprises FPO
Adani Enterprises Limited is doing something new in a market where IPOs (Initial Public Offerings) have become an everyday affair. The flagship company is launching its Follow-on Public Offer (FPO) for investors and eyeing to raise a whopping Rs.20,000 crores from the issue.
What is an FPO?
An FPO is a fresh issue of equity shares by a company already listed on the stock exchange. It is a process by which a company can expand its equity share capital base by issuing fresh equity shares to existing and new investors.
About Adani Enterprises Limited FPO
Adani Enterprise is launching the FPO on 27th January with a four-day investment window. The funds raised from the fresh issue of equity shares will be utilized to meet the capital expenditure incurred by its subsidiaries and pay off existing debts. Here are the details of the FPO –
Related - Know the difference between an IPO and an FPO
About Adani Enterprises
Adani Enterprises is a part of the reputed conglomerate Adani Group. The company was established in 1988, and since then, it has grown tremendously and is now counted among the top companies in India. The company is engaged in multiple verticals, some of which include the following –
- Mining
- Water
- Data center
- Defence & Aerospace
- Edible Oil & Food
- Ports
- Solar Manufacturing, etc.
As of 31st December 2022, the company’s market capitalization stood at Rs.18,402 billion. Here’s a look at the financial performance of the company over the years –
Moreover, the company's stock has also delivered good returns for investors. Have a look -
(As on 25th January 2022)
(Source - https://economictimes.indiatimes.com/adani-enterprises-ltd/stocks/companyid-9074.cms)
Should you invest in the FPO of Adani Enterprises Limited?
Adani Enterprises’ shares are trading at a value higher than the FPO price band. As such, you can get the company's shares at a lower rate if you subscribe to the FPO. Moreover, the grey market premium on the share is high as the market has a positive outlook about the company.
So, if you want to add the company’s stock to your portfolio, the FPO can be the right time to grab the stock at reduced rates. Moreover, if you have a long-term perspective, you can also get good returns from the stock as the company is poised to grow.
Related - Here's what you need to know about grey markets
Check out this video for more information about Adani Enterprises FPO
Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.
