Adani Enterprises' $500-Million QIP Subscribed Four Times

Adani Enterprises Ltd.'s share sale worth $500 million to institutional investors garnered over four times demand from marquee investors including GQG Partners, according to people aware of the development.

The qualified institutional placement book was closed on the morning of Oct. 10 and the process will close by Oct. 15 after the board meeting, the people told NDTV Profit on the condition of anonymity.

The allocation of shares to the investors will be announced after the board meeting on Tuesday, they said. Quant Mutual Fund, SBI Life Insurance, ICICI Prudential Life Insurance, SBI General Insurance, Whiteoak Capital Mutual Fund and Tata Mutual Fund are among the investors that participated in share placement, the people added.

Adani Enterprises' qualified institutional placement offer was launched Wednesday at a floor price of Rs 3,117.47 per share. This is at a discount of 6.08% from the share's closing price on NSE on the day of launch.

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

The success of billionaire Gautam Adani’s flagship comes over a year after it called off its fundraising in 2023 following a scathing short-seller report.

Adani Enterprises' board approved raising Rs 16,600 crore via qualified institutional placement and other modes, in May this year, through various methods, including share sale to institutions.

This share sale would follow the Rs 8,373 crore QIP of Adani Energy Solutions Ltd. in August, for investment in transmission assets and smart metering business.

Shares of Adani Enterprises have risen 27.5% during the last 12 months and advanced by 11.4% year-to-date.

Three analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 33%.

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