Adani Energy Solutions Ltd. (NSE: ADANIENSOL), the power transmission unit of the Adani Group, has successfully raised $1 billion through a qualified institutional placement (QIP).
This marks the conglomerate’s first public equity raise since the Hindenburg report earlier this year, which led to a significant drop in the group’s market value. Abu Dhabi Investment Authority and Qatar Investment Authority are among the key investors.
This successful fundraising is a significant step for the Adani Group in rebuilding investor trust after the Hindenburg report. The funds raised will be used for AESL’s expansion plans and refinancing existing debt. The strong investor interest in the QIP is a positive signal for the Indian capital markets.
The AESL QIP opened on Tuesday, was oversubscribed three times with demand price of about ₹26,000 crore, making it the biggest transaction in Indian energy market. The QIP issue closed at ₹1,135 per share, as against the issue price of ₹976 per share.
Key points:
- Amount raised: $1 billion (approximately ₹8,200 crore)
- Floor price: ₹1,027 per share
- Final price: ₹1,135 per share (14% listing discount)
- Oversubscription: The QIP was oversubscribed three times, with demand of about ₹26,000 crore Method: Qualified Institutional Placement (QIP)
- Purpose: To fund expansion plans and refinance debt
- Investors: Abu Dhabi Investment Authority (ADIA), Qatar Investment Authority (QIA), and other domestic and international institutional investors
This successful fundraising is a significant step for the Adani Group in rebuilding investor trust and showcases the resilience of the Indian energy sector. It also highlights the growing interest of foreign investors in India’s infrastructure development.