Adani Enterprises shares rise 4% before FPO should this be your reason to buy the stock?


Adani Enterprises shares rose more than 4 percent. Adani Enterprises, Gautam Adani’s flagship company is seeking to raise Rs 22,000 crore on the primary market.


Adani Enterprises shares rose more than 4% in early trading on Thursday after the announcement of its massive follow-on public offer (FPO). Adani Enterprises, Gautam Adani’s flagship company is seeking to raise Rs 200,00 crore on the primary market.


Adani Enterprises has set the price range for its FPO at Rs 311-3276 per piece. Each lot contains 4 shares with a face worth of Rs 1, and each lot costs Rs 13.104. Retail bidders will receive a discount at Rs 64 per equity shares during the bidding process.

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Adani Enterprises shares rose more than 4 percent to Rs 3.446 on Thursday. The company plans to offer shares during the FPO at 10 percent discount from its previous close of Rs 3,595.35. Adani Enterprises plunged 18% from its 52-week peak of Rs 4,189.55, which was reached on December 21, 2022.


Adani Enterprises, which was founded in 1988 by Asia’s richest person, Gautam Adani, is the flagship Adani Group. This conglomerate, which is based in India, has many business ventures, including coal mining and airport operations, defense, energy, and cement.

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Market participants are still positive about Adani Enterprises, despite the fact that Adani Enterprises offered shares at a significant discount to current market prices. Adani Enterprises is considered a compounder. Therefore, aggressive investors should bid on the issue. However, others have raised their long-term target stock price.


According to reports, global investors and FPIs are keen to support the issue. Adani Enterprises’ business model and momentum is a sweet spot, and it will also attract retailers’ interest, according to Kranthi Bathini of WealthMills Securities.

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Adani Enterprises has provided mutlibagger returns for investors even in the past year, despite volatility in the market. Bathini stated that it is unlikely that the stock will exceed its listed price, which makes it a strong support for investors. The past performance of the stock makes it an attractive investment for high risk investors.


Apart from Adani Enterprises Patanjali Foods (previously Ruchi Soya Industries), raised Rs 4,300 crore via FPO, while Yes Bank raked in Rs 15,000 crore through its secondary stake sale, which took place in July 2020. FPOs aren’t a popular way to raise funds for listed businesses.


Ventura Securities has increased its 24-month price target of Adani Enterprises from Rs 5,999 to Rs 5,999. This suggests that Adani Enterprises could be up to 75% since Thursday’s low. According to Ventura Securities, the Russia-Ukraine conflict and climate change issues caused turmoil in the energy markets have prompted a swift switch to clean fuel sources.


Adani has made rapid progress in harnessing that potential, and Green H2 holds the greatest potential,” stated the brokerage firm. “Adani is seeing rapid growth in its airport business; the roads business is moving at a fast pace and the coal business is making a handsome profit.”


The issue will be open from January 27 to 31. 50 percent of the proceeds have been reserved for qualified institutional bidders (QIBs). The retail bidders and non-institutional investors (NIIs), respectively, have been allocated a quota of 15% and 35%.


ICICI Securities and Jefferies India are the book-running managers for the issue. Link Intime India serves as the registrar for the issue.

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