#ADANIENT is in the news again!
Adani Enterprises plans to raise Rs. 20,000 crores by issuing fresh equity shares via FPO.
🌟What exactly is an FPO?
FPO is a process by which a company that is already listed on an exchange issues new shares to the investors to raise additional capital.
🌟Why Adani is going for an FPO now?
➡️ To improve Leverage ratio: Many of us might already know about Adani’s current debt status, the company has gone on an acquisition spree in the past couple of years and the ratios have taken a toll. Raising additional capital in the form of equity will be beneficial for the company in this state.
➡️ To fund its Super-app: The company is planning to release a super-app that would provide a platform to cross-sell the company’s products and services.
How do you think equity investors are going to react to this strategic move?
