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Adani Enterprises FPO: What GMP signals as issue to be released on Friday

 



• Adani Enterprises FPO GMP fell today after Hindenburg Research reported that it has taken short positions in Adani Group shares, believe market observers.


Adani Enterprises FPO: The Follow-on Public Offer (FPO) of Adani Enterprises Limited is going to open for subscription on. The Rs 20,000 crore FPO will be open for bidding till January 31, 2023. The Adani group company has already fixed the Adani Enterprises FPO price band at ₹3,112 to ₹3,276 per equity share. The management of this flagship Adani group company has already announced that the net proceeds of the follow-on issue will be used for debt servicing and capital expenditure requirements of the company and its subsidiaries.


Meanwhile, after the bloodshed on Dalal Street in Wednesday's session and heavy selling in Adani Group shares, the gray market is indicating muted sentiments regarding Adani Enterprises FPO. According to market observers, Adani Enterprises FPO GMP (grey market premium) today is ₹45, down ₹55 from Wednesday's GMP of ₹100. He said the fall in gray market sentiment is mainly due to trend reversal on Dalal Street as the market failed to break its strong resistance level of 18,200 to 18,250.


However, gray market sentiment was further dented by Hindenburg Research taking short positions in shares of Adani Group, market observers said. He added that a lot would depend on the kind of response this follow-on offer receives. The issue opens on Friday this week, so a strong response is expected to change the mood in the gray market.


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However, stock market experts advise investors to look at the fundamentals of the company rather than the mood of the gray market. He added that GMP has no relation with the financial position of the company as it is completely unregulated and speculative. He asked investors to scan the company's balance sheet instead of checking Adani Enterprises FPO GMP, which keep changing from time to time.


Adani Enterprises FPO Review


Giving 'Subscribe' tag to Adani Enterprises FPO, Aashika Research - Equities says, "On the financial performance front, in FY 18-21, Adani Enterprises has registered 26.5 per cent CAGR growth in topline. During the period The EBITDA margin has been maintained at around 5. percent. The average ROE during FY 18-21 stood at ~5.0%. Thus, we recommend our investors to subscribe to Adani Enterprises FPO as it is a nation building group and It is entering the sunrise zone which is green hydrogen with an enormous chance of growth."


Share price of Adani Enterprises closed at ₹3,405 per share on NSE after the end of Wednesday's session.

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