Adani Group's FPO will be a success: Jugeshinder Singh

Diversified giant Adani Enterprises CFO Jugeshinder Singh has recently expressed confidence that the follow-on offer (FPO) that started last week will be successful. It has been informed that no changes will be made to the FPO price or schedule. It is known that sales in the shares of Adani Group companies increased at the end of last week due to the impact of the US short-seller Hindenburg Research report.

But Rs. Adani Enterprises' FPO to raise Rs 20,000 crore started on Friday (27). The issue will close on Tuesday (February 1). In this context, it is essential for the CFO to clarify that there is no plan to revise the FPO price or schedule. In the last two trading sessions, the counters of Asia's giant Gautam Adani Group listed companies were traded with selling. Hindenburg Research alleged that there was an increase in share prices and irregularities in the accounts.

Adani Group has already informed that it will face these allegations legally. In an interview, Singh claimed that Hindenburg had leveled allegations against the Adani Group without doing any research. It has been clarified that the report does not contain any research-related material. He explained that the allegations were completely baseless.

Because of success

Adani Enterprises FPO price range is Rs. 3,112–3,276. As the markets fell, the stock closed at Rs. ended at 2,762. However, FPO Singh said that FPO can be successful. The reasons for this are explained as follows. All stakeholders including bankers and investors have faith in FPO. Last Wednesday, the company received Rs. 5,985 crores has been raised.

In the open market, even though the share has reached a low price, there are not enough shares (free float) available. Only retail investors can get an adequate amount. A fair amount of shares will be made available through FPO to institutional investors who are strategic investors. FPO was opened to increase free float along with liquidity. In fact, long-term investors are interested in investing in value companies. The company acts as an incubator for companies in many sectors.

It operates airports, roads, new energy projects, data centers, mining businesses, etc. Along with these, hydrogen is expanding in modern businesses. For this, 50 billion dollars will be invested in the coming decade. It also opened up plans to split the businesses into separate companies between 2025-2028. Singh clarified that changes in the company's long-term value will not occur due to temporary fluctuations in Verasi's share price.

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