Adani Energy Solutions QIP Opens To Raise Nearly $1 Billion

Adani Energy Solutions Ltd. launched its nearly $1 billion qualified institutional placement on Tuesday to fund expansion plans. The floor price for the QIP has been fixed at Rs 1,027.1 per share.

The QIP is a first by the Adani Group after the US-based short seller Hindenburg accused them of stock price manipulation and improper use of a tax haven. The accusations impacted the group's market value by over $100 billion before it recovered this year.

Some investors likely to participate in the QIP are GQG, ADIA, the Qatar Fund and US-based funds. Eastspring, White Oak, Nomura, Bandhan MF, Axis MF, and IIFL are likely to participate in the QIP, according to people familiar with the matter who spoke in anonymity.

SBI Capital Markets Ltd., Jefferies India Pvt., and ICICI Securities Ltd. have been appointed as the book-running lead managers for the issue. Further, Cantor Fitzgerald & Co. has been appointed as an advisor in connection with the issue.

Adani Energy Solutions, which is involved in the business of power transmission and distribution, has an order book of Rs 17,000 crore to implement in the transmission business as of June 30. It sees strong near-term opportunity from the Rs 90,000-crore tariff-based competitive bidding tenders.

Earlier in May, the company's board approved a fundraise of up to Rs 12,500 crore through either QIP or any other permissible route.

In the first quarter of this fiscal, the company reported a 47% year-on-year rise in its consolidated revenue from operations to Rs 5,379 crore.