Anything about the Adani Group is followed by descriptors like largest, biggest, highest, and fastest that's ADANI. In the same vein, last week, when Adani Enterprises said it was planning on raising funds via a further public offering (FPO), which is essentially a follow-up to the initial public offering, it was pegged to be India’s largest so far. The company is looking to raise an eye-watering Rs 20,000 crore ($2.4 billion). This fundraise is an important one for Adani Enterprises, which plays the role of an incubator for the group. It bankrolls a dizzying array of new businesses—from airports and metals to petrochemicals and media—by relying heavily on debt taken on its own books. But to continue to be a magnanimous parent, Adani Enterprises has to raise equity. Now seems to be a great time for the company to sell shares. The stock price is near an all-time high, and its market cap is at a mighty $54 billion. Not only will the equity-fundraise reduce the company's leverage level, but it could also help cut the criticism about the public shareholding being concentrated in a few hands—an issue we wrote about in April 2021. But is what is good for the company good for the investors in this offer? Will there be buyers at the ridiculous valuations at which the Adani Enterprises stock trades?
