Adani Energy Solutions shares gain 2% on raising ₹8,373 crore via QIP; check details

Adani Energy Solutions informed the stock exchanges in a filing on August 5 that it has successfully completed its Qualified Institutional Placement (QIP). The company said that its QIP was the largest in India's power sector.

The Adani Group firm said the QIP was its first equity fundraising effort since its July 2015 demerger from Adani Enterprises Limited (AEL).

The QIP was launched after market hours on July 30. The base deal was valued at ₹5,861 crore ($700 million) and included a green shoe option to size up to ₹8,373 crore ($1 billion).

Adani Energy Solutions’ QIP garnered overwhelming demand as it received bids approximately 6 times the size of the base deal. The bidders in the QIP came from a diverse group of investors, including international investors, sovereign wealth funds, major Indian mutual funds and insurance companies, as per the release. The company also exercised the green shoe option due to significant demand and increased the size of the QIP to ₹8,373 crore ($1 billion).

Adani Energy Solutions plans to use the funds raised via the QIP to invest in transmission assets by building bulk evacuation corridors for renewable energy. The funds will also be used for a smart metering business, debt repayment, and general corporate purposes.

Adani Energy Solutions Ltd (AESL) is a part of the Adani Group and operates in the power sector. The company provides services across power transmission, distribution, smart metering, and cooling solutions. AESL also claims that it is India’s largest private transmission company, with a transmission network of 21,187 km and 57,186 MVA transformation capacity as of June 30, 2024.

Adani Energy Solutions shares closed at ₹1,135 apiece, down 2.08%, on the NSE.