Adani Energy Solutions raises $1 billion in landmark share sale

Adani share sale: Billionaire Gautam Adani's power transmission unit, Adani Energy Solutions Ltd, has successfully raised $1 billion through a share sale. This marks the conglomerate's first public equity raise since a critical Hindenburg report led to a significant drop in shareholder value.

The funds were raised through a qualified institutional placement (QIP) issue, which was highly successful, being oversubscribed three times with a demand of approximately Rs 26,000 crore. This makes it the largest transaction in India's energy sector. The QIP closed at Rs 1,135 per share, compared to the issue price of Rs 976 per share, representing a 14 per cent listing discount.

Qualified Institutional Placement (QIP) is a tool used by listed companies to raise funds from large institutions. Notable investors such as GQG, QIP, ADIA, and prominent U.S. entities participated in the QIP, along with domestic institutions like Bandhan MF, Nomura, and 360 India Infoline.

This fundraise is the first since the group's flagship firm canceled a Rs 20,000 crore issue in February last year following the Hindenburg report, which accused the group of accounting fraud and stock manipulation. Although the Adani group strongly denied these allegations, the market value of its listed companies plummeted by over USD 150 billion at one point.

Despite this, the group has largely recovered, and the successful QIP is seen as a significant vote of confidence from investors. In a related development, Adani Enterprises Ltd, the group's flagship firm, is planning to revive its first-ever public bond sale to raise up to Rs 600 crore. The company has appointed Trust Investment Advisors, AK Capital Services, and Nuvama Wealth Management as lead managers for the bond issuances.

Earlier this year, in March, the group re-entered the dollar bond market when its solar energy unit, Adani Green Energy Ltd, and associated firms received bids worth approximately USD 2.9 billion, marking their first venture into the bond market since the Hindenburg report.

In a stock exchange filing, Adani Energy Solutions Ltd (AESL) stated that its management had authorised the opening of the QIP issue on Tuesday and approved the floor price of Rs 1,027 per equity share.

(With PTI inputs)