Impacts of Hindenburg report for adani Group#P2...
The follow-on public offer (FPO) of adani Enterprises has been withdrawn by adani Group. The adani Group's FPO was the largest to date and was completely subscribed, which implies it was sold. adani Enterprises also bought 20 thousand crore rupees using this FPO. The return on investment money was promised by adani Group.
Despite the fact that the FPO was announced by the adani Group on january 27 and sold out in four days, it was cancelled. As unexpected as the adani Enterprises FPO's comeback was how it was oversubscribed.
How come we are saying this? Let us explain the rationale.
One adani Enterprises share cost Rs 3388.95 as of january 25. adani Enterprises' FPO price range was maintained at Rs 3,112 to Rs 3,276 per share. The stock of adani Enterprises dropped to Rs 2761.45 on the day, january 27, when the FPO was introduced. This translates to roughly Rs 350 less than the FPO price range. After the stock market reopened on january 30, adani Enterprises' stock increased to Rs 2892.85. Additionally, this was inside FPO's budget range. And on january 31, the final day of the FPO, adani Enterprises' share price was Rs 2973.90. But even then, it was approximately Rs 150 less expensive than the range of FPO.
So let's look at something that clearly doesn't fit. That is, how was the FPO sold while the share rate of adani Enterprises was lower than the price range of the FPO? What are those investors who purchased the FPO, after all? You already got an indication from us about this. This is also one of the grounds for withdrawing the FPO, according to analysts.