Adani Energy to raise up to $1 billion

31 Jul 2024 , 11:36 AM

According to a term sheet provided by the bankers, Adani Energy Solutions began a qualified institutional placement (QIP) on Tuesday with the goal of raising $1 billion (₹8,373 Crore).

The offering consists of a basic transaction worth up to ₹5,861 Crore ($700 million) and a greenshoe option worth up to ₹2,512 Crore ($300 million) in further funding.

An indicative issue price of ₹976 per share has been announced by the business, representing a 13.24% decrease from Tuesday’s closing price.

Sources state that GQG Partners, Qatar Investment Authority, Abu Dhabi Investment Authority (ADIA), White Oak, Nomura, 360 ONE WAM, and local mutual funds like Axis and Bandhan are among the investors taking part in the placement.

With the option to increase to 25.7 million shares, the corporation is initially issuing 60.1 million equity shares. The term sheet states that the dilution at the upsized offer is 2.31% at the indicative issue price, and at the base deal, it is 5.38% of the pre-issue outstanding equity capital.

The money raised will be used by the company to pay down some of its subsidiaries’ capital expenditure requirements, which include buying and installing smart meters, setting up transmission systems, paying off some outstanding debt, and basic corporate expenses.

Adani Energy Solutions is expected to introduce a QIP this week in an effort to raise up to $1 billion, according to an ET story on Tuesday.

The company said that the issue price would be decided after consulting with the bankers in an exchange filing.

It further stated that SBI Capital Markets, Jefferies India Private, and ICICI Securities have been named the issue’s book-running lead managers.

The board of the power transmission division of the Adani Group authorized raising ₹12,500 Crore through stock in May in order to finance expansion.

After raising the required funds, Adani Enterprises canceled its ₹20,000 Crore follow-on public offer (FPO) in February of last year. This will be the first equity fundraising by an Adani Group company since then. After the largest FPO in the country saw a significant decline in the price of Adani Group shares due to a negative report released by US short-seller Hindenburg, the business reimbursed the funds obtained.

Adani Energy holds a market share of more than 35% and is one of the top private sector power transmission and distribution (T&D) firms in India.

For feedback and suggestions, write to us at [e-mail]