Shares of Adani Enterprises fell nearly 2% in Tuesday’s trade following media reports that Adani Group’s flagship company had submitted an offer letter to the stock exchange on Monday proposing a follow-on public offer (FPO) of Rs 20,000 crore. The Economic Times reported that the company is studying the possibility of launching a public offering in the last week of January. The stock fell 1.6% to hit a low of Rs 3,560.05 on the BSE following the developments.

The FPO could lead to a 3.5% drop in the stake of promoters led by Gautam Adani, The Economic Times reported. As of September 30, the promoters held 72.63% of Adani’s shares, with the remaining 27.37% owned by public shareholders. LIC has a 4.03% stake among public shareholders, while Nomura Singapore, APMS Investment Fund, Elara India Opportunities Fund and Lts Investment Fund hold 1-2%, ET reported.

Adani Enterprises announced a subsequent share sale in late November. According to The Economic Times, Adani Enterprises may also offer discounts to retail investors. However, it is also reported that the company will likely raise funds in the FPO by issuing partially paid-up shares.

The Economic Times reported on January 10 that some of Adani Group’s strategic equity partners, including the International Holding Company (IHC) from the UAE and other sovereign wealth funds and financial institutions, are expected to be the largest buyers of the upcoming follow-on public offering.

Adani Enterprises was in the news earlier with reports that the Adani group of companies was looking to buy a stake in PTC India. Adani called the media to report the speculation.

“The company is constantly evaluating various opportunities for the growth and expansion of the company’s business to increase the value of the stakeholders. Moreover, no information is not released to the stock exchange but should be released by the company under SEBI (Listing Obligations and Disclosures 2015) requirements) regulations,” the company told the BSE on January 13.