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Adani Energy Solutions, the power transmission arm of the Adani Group, successfully raised a substantial $1 billion (over Rs 8,300 crore) through a qualified institutional placement (QIP) issue. The QIP, which was oversubscribed three times, witnessed strong demand from both domestic and international investors, reaching approximately Rs 26,000 crore. This marked a significant milestone, solidifying it as the largest transaction in India's energy sector to date.
The QIP concluded with a closing price of Rs 1135 per share, exceeding the issue price of Rs 976 per share. Notably, the company had set a floor price of Rs 1,027 per share, allowing a maximum discount of 5% on the floor price. This successful fundraising endeavor was made possible by the participation of prominent global investors, including GQG, QIP, ADIA, and several new entrants from the US market. Domestic institutions also played a crucial role, with Bandhan MF, Nomura, 360 One, and India Infoline contributing to the overwhelming response.
The news of this successful QIP comes against the backdrop of the Adani Group's recent challenges. In February 2023, Adani Enterprises had to call off its fully subscribed Rs 20,000 crore follow on public offer (FPO) following a damning report by the US-based Hindenburg Research. The report alleged brazen stock manipulation and accounting fraud, accusations that the conglomerate vehemently denied. This fundraising success signifies a remarkable rebound for the Adani Group, demonstrating investor confidence in its future prospects and ability to navigate challenging situations.