In a surprising move by the Indian and Adani’s supporters abroad, Adani’s Follow On Public Offering (FPO) was fully subscribed. Adani Enterprises that was on back foot because of the Hindenburg research report gets a relief by getting the FPO fully subscribed. Various users on social media have cited that they Are with Adani Corp and also there was a Twitter trend naming #IndiaStandsWithAdani.
The biggest ever FPO in Indian market history was released by Adani Corp on 29th January. It was only 1% subscribed on its launch day and surprisingly now it is 112% subscribed.
Adani Enterprises received a bid of 50.86 million shares in contrast to its 45.5 million offer shares.
Adani’s FPO was supported by India’s richest people. Reliance chairman Mukesh Ambani, Sajjan Jindal, industrialist Sunil Mittal, Sudhir Mehta and Pankaj Patel.
Many other companies also subscribed for the FPO which are based in UAE , Saudi Arabia, Egypt and other Arab and European countries.
Adani Corp issued a statement after the Hindenburg report in which the company cited the report as an attack on India and that only triggered people in support of the Indian corporation that was listed number 3 in world richest list.
Gautam Adani, Chairman of Adani Corp has lost his personal wealth of nearly 50 billion and is now out of the world’s richest 10.
As reported by Bloomberg Adani slipped out of the 10 richest persons in the world as he lost his own net worth. Aani Corporation is also seeing setback and its shares are continuously plunging with some exceptions.
The US based Hindenburg research is now seemingly in a difficult patch now as the FPO that was intentionally targeted as the report was just released 5 days before the release of FPO.
Adani Corp had also alleged that the short seller research firm had also targeted companies earlier and it is now targeting Adani ahead of its release of its biggest ever FPO.
What Is a FPO?
FPO is Follow On Public Offer. It means that the companies that are already listed on stock exchanges issue new shares for new investors as well as its old shareholders.
By this process a company manages to diversify its equity base.
The FPO process is done after a company goes through an IPO.
If the company still feels that it needs more money, FPO is issued.
Generally companies issue FPO for paying debts or for expansion of its market.
Gautam Adani, who is a school dropout is a self made billionaire. He was Asia’s richest before the release of the report.
Gautam Adani made his way in the rich list after 2008. His total wealth in 2008 was estimated at 9.8 billion and he never saw back after that.
Adani is also often cited by the opposition parties in India that he is favored by Indian Prime minister Narendrabhai Modi.
Many people accuse Adani of using his influence as he and the Prime Minister, both from Gujarat State.
Adani was also in news back days because of a drug container that was seized on his port. Many opposition leaders cited that he is being saved by authorities as he is a big gun.
Adani corporations Shares were also at record low as per share market news.
Adani groups companies are given here for your information.
SECTORS
Energy and Utilities
Transport and Logistics
Incubation
Airport
Materials
Others
COMPANIES
Adani Enterprises limited
Adani Ports and SEZ limited
Adani Green Energy Limited
Adani Total Gas Limited
Adani Transmission Limited
Adani Power Limited
