Adani Energy Solutions raises Rs 8,373 crore via QIP, largest in India's power sector

Ahmedabad:

Adani Energy Solutions Ltd (AESL) on Monday announced it has successfully raised Rs 8,373 crore ($1 billion) via the qualified institutional placement (QIP) route, the largest in the country's power sector. 

 

The transaction was launched post-market hours on July 30 with a base deal size of Rs 5,861 crore ($700 million) that included a green-shoe option to size up to Rs 8,373 crore ($1 billion).

 

The QIP received bids of approximately six times of the base deal size from a diverse group of investors, including utility-focused US investors entering India for the first time, sovereign wealth funds, major Indian mutual funds, and insurance companies.

 

The company said in a statement that this QIP marks its first equity raise in the capital market since its demerger and listing from Adani Enterprises Limited (AEL) in July 2015.

 

"India's robust investment cycle and rising power demand are positive indicators for the power sector. The strong interest from institutional investors reflects their commitment to and belief in India’s energy transition, in which AESL plays a pivotal role," said Kandarp Patel, Chief Executive Officer of AESL.

 

Patel said that Adani Energy Solutions is revolutionising the delivery of electricity to end consumers in a reliable, affordable, and sustainable manner, contributing significantly to India's energy transition.

 

"The overwhelming response to our QIP reflects the strong confidence that investors have in our robust business model, execution capabilities, and effective capital allocation strategy, driving strong growth and exceptional shareholder value," he noted.

 

The proceeds from the QIP will be utilised for investment in transmission assets, smart metering business, debt repayment, and general corporate purposes. QIP is an instrument used by listed companies to raise funds from several large institutions. According to sources, billionaire Stanley Druckenmiller's family office-led investment firm and two other US-based long-only funds, Driehaus Capital Management and Jennison Associates, invested in the QIP of Adani Energy Solutions.

 

Adani Energy Solutions posted 73 per cent net profit growth in Q1 FY25 as revenue surged 43 per cent YoY.

 


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