Adani Energy QIP: A subsidiary of the Qatar Investment Authority (QIA), SBI Mutual Fund, and foreign investment firms Nomura and Citigroup emerged as the largest investors in Adani Energy Solutions Ltd’s (AESL) $1 billion qualified institutional placement (QIP), according to a stock exchange filing.
The QIP, which closed last week with a total issue size of Rs 8,373.10 crore (approximately $1 billion), attracted over 120 investors. The offering, which focuses on power transmission, distribution, and smart metering, was oversubscribed six times, generating a demand of over Rs 50,000 crore.
AESL’s filing revealed that its board has approved the allocation of more than 8.57 crore shares to qualified institutional buyers at an issue price of Rs 976 per share, representing a discount of Rs 51.11 (4.98 per cent) from the floor price of Rs 1,027.
Among the key investors, INQ Holdings LLC, a wholly-owned subsidiary of QIA, acquired 15 per cent of the shares sold. Citigroup’s Mauritius-based funds purchased 8.88 per cent of the shares, while four SBI funds—SBI Infrastructure Fund, SBI Large & Midcap Fund, SBI Long Term Advantage Fund Series IV, and SBI Magnum Children’s Benefit Fund—together acquired 7.93 per cent. Nomura Singapore Ltd ODI obtained 7.5 per cent of the shares.
Notably, investment firms linked to billionaire Stanley Druckenmiller were among those who participated in the QIP. The filing did not disclose the exact shareholding of Duquesne Family Office, Driehaus Capital Management, and Jennison Associates, as their combined holdings were below 5 per cent of the total issue size.
This QIP marks the largest equity raise in the energy sector and follows the Adani Group’s scrapping of a Rs 20,000 crore issue in February last year, which was halted after the Hindenburg report raised allegations of accounting fraud and stock manipulation. The Adani Group has consistently denied these allegations, and the successful QIP is viewed as a significant indicator of renewed investor confidence.
In addition to the recent QIP, Adani Enterprises Ltd, the conglomerate’s flagship firm, is preparing to launch its first public bond sale. The company aims to raise up to Rs 600 crore and has appointed Trust Investment Advisors, AK Capital Services, and Nuvama Wealth Management as lead managers for the issuance.
Earlier this year, Adani Green Energy Ltd, part of the Adani Group, successfully accessed the dollar bond market for the first time since the Hindenburg report, securing bids worth approximately $2.9 billion.
(With PTI inputs)
