Though I am not tracking these events for the stocks which I hold for the long term, to the best of my knowledge, it all depends if the FPO is diluted or non- diluted.
If it is diluted and promoters selling at a lower price than the market price, investors may react negatively…
However , if FPO is non diluted , then the investors would react positively…
if the quality of business is sound and future prospects are good, the investors may take a neutral view even in case of diluted FPO.
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