Many family offices interested in Adani FPO, may invest ₹9,000 crore

Subject: Economy

Section: Financial market

Concept:

The ongoing FPO by Adani Enterprises could get a boost on Tuesday with investments worth about ₹9,000 crore expected from family offices in Dubai and India.
A family office is an entity created by high net-worth individuals to manage their money-related matters including investments.
This will be in addition to the ₹6,000 crore from anchor investors and ₹3,200 crore from International Holding Company.
The fresh investments will take Adani Enterprise closer to its target of ₹20,000 crore from the FPO.

Follow on Public Offer (FPO)

A follow-on public offer (FPO), also known as a secondary offering, is the additional issuance of shares after the initial public offering (IPO).
Companies usually announce FPOs to raise equity or reduce debt.
The two main types of FPOs are dilutive—meaning new shares are added—and non-dilutive—meaning existing private shares are sold publicly.
An at-the-market offering (ATM) is a type of FPO by which a company can offer secondary public shares on any given day, usually depending on the prevailing market price, to raise capital.