Shares of Adani Energy Solutions surge over 8% following $1 billion equity fundraising

This was the first public equity raised by the conglomerate since a damning Hindenburg report.

The scrip of the company rallied 8.34% to trade at ₹1,232.95 apiece on the National Stock Exchange (NSE).

On the BSE, it zoomed 7.92% to trade at ₹1,227.75 per piece.

In late morning trade, the shares of Adani Energy Solutions hit an intraday high of ₹1,236.70 and 1,236 apiece on the BSE and the NSE.

The 30-share BSE Sensex rose 88.64 points or 0.11% to trade at 81,829.98, while NSE Nifty went up 53.90 points to trade at 25,005.05.

In the intra-day session, the BSE benchmark jumped 388.15 points, or 0.47%, to hit an all-time high of 82,129.49 in early trade while the broader NSE Nifty scaled the record 25,000 level for the first time, rising to 127.15 points, to 25,078.30.

Billionaire Gautam Adani-led group's power transmission unit has raised USD 1 billion through a share sale, the first public equity raised by the conglomerate since a damning Hindenburg report, which wiped away billions in shareholder value.

Adani Energy Solutions Ltd had raised the funds through a qualified institutional placement (QIP) issue.

The QIP, which opened on Tuesday, was oversubscribed three times with demand of about ₹26,000 crore - making it the largest transaction in India's energy space.

The issue closed at ₹1,135 per share, as against the issue price of ₹976 per share or a 14% listing discount.

QIP is an instrument used by listed companies to raise funds from large institutions.

Marquee investors such as GQG, QIP, ADIA and a few top names in the US participated in the QIP.

Domestic institutions including Bandhan MF, Nomura, and 360 India Infoline also participated in the issue.

The fundraise is the first after the group's flagship firm scrapped a ₹20,000 crore issue in February last year, following the Hindenburg report alleging accounting fraud and stock manipulation.

Though the group vehemently and repeatedly denied all allegations, listed companies of the conglomerate at one point saw over USD 150 billion of their market value being wiped out.

While the group has largely recovered, a successful QIP is being seen as a powerful vote of investor confidence in the tycoon.

Earlier, Adani Energy Solutions Ltd (AESL) said its management has authorised the opening of the issue on Tuesday as well as approved the floor price for the issue.

The floor price was set at ₹1,027 per equity share.

Last month, Adani Energy Solutions Ltd reported a net loss of ₹1,190.66 crore for the June quarter of 2024-25 mainly due to exceptional losses related to the divestment of an asset.

The company had posted a net profit of ₹181.98 crore during the April-June period of 2023-24, the company said in a regulatory filing.

The total income rose to ₹5,489.97 crore in the quarter under review from ₹3,772.25 crore in the year-ago period.