Shares of Adani Enterprises (AEL) were stable on Friday after crashing nearly 4 per cent on Thursday. The stock has declined more than 15 per cent in the past one month ahead of its Rs 20,000-crore follow-on public offering (FPO).
AEL on Wednesday set the price band for the FPO between 9 per cent and 13 per cent lower to that day’s closing price at Rs 3,112-Rs 3,276 per share. Retail investors—those applying for shares worth less than Rs 2 lakh—are getting an additional discount of Rs 64 per share.
Selling pressure during any kind of follow-on share sale is not uncommon as arbitrage traders look to sell shares already listed in the secondary market and seek to subscribe to discounted shares. However, this strategy may not be as straightforward for Adani’s FPO, which will be open between January 27 and January 31.
Analysts said the Gautam Adani-led firm has hit a masterstroke by iss
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