FPOs in India & its Impact on Indian Business Ecosystem

Key FPOs occurred in India

In 2020, YES Bank filed its FPO for a total issue price of Rs. 15,000 crores along with the price band range of Rs. 12 to Rs. 13, but unfortunately the company failed to attain the subscription completely and recorded only 93 percent of subscription.

Similarly, Patanjali-backed Ruchi Soya opened its FPO in March 2022 and raised Rs. 4,300 crore through the allocation of 6, 61, 53,846 equity shares at a range of face value of each Rs. 2. Through this FPO, the company refunded the majority loans to the banks worth Rs. 2,925 crore and became a debt-less firm.

In May 2024, the mining company Vedanta headquartered in Mumbai announced its interest to raise funds through FPO. As well, as per the report from Bloomberg report, the company has requested JP Morgan Chase & Co to aid it to raise $300 million through rupee-denominated bonds.

Recently in the month of May, Adani Enterprises sanctioned the approval to raise over Rs. 16000 crores through QIP and equity shares. This significant move is considered as a chain activity of Adani’s called off its FPO to elevate Rs. 20 crores but just after the FPO called off announcement, the company had time-honored with full subscription.

In the month of April 2024, Vodafone Idea succeeded Rs. 18000 crore and became the largest follow-on-public offering in India. After successfully raising the fund in FPO, the stocks of the company rose over 5 percent.

“On the back of this fundraise and with continued support from banks, Vodafone Idea will stage a smart turnaround”, - Kumar Mangalam Birla, Chairman, Aditya Birla Group.