Adani Enterprises, the flagship of the Adani Group, will be launching its qualified institutional placement in August or early September to raise $16,600 crore (around $2 billion), encouraged by the investor appetite for group firm Adani Energy Solution’s $1 billion QIP offering that opened on Tuesday.
Adani Energy’s QIP has been subscribed around five times, sources said and subscribers included Rajiv Jain’s GQG Partners, sovereign fund Abu Dhabi Investment Authority and two other new global marque investors. Domestic mutual funds have put in bids for shares worth over $300 million, the sources said.
This is encouraging news for Adani Enterprises, whose board had approved in May to raise up to ₹16,600 crore, and was awaiting the response to Adani Energy’s QIP to decide on the issue size. Work on the issuance is in progress, according to sources..
This will be the first time Adani Enterprises will be tapping equity money after it aborted a follow-on public offer in February last year to raise ₹20,000 crore, in the wake of short seller Hindenburg Research making some serious allegations against the group.
It is also raising ₹600 crore in the domestic market through the issue of non-convertible debentures, which includes a greenshoe option of ₹300 crore. According to the draft prospectus filed with the stock exchanges, majority of the proceeds of the debt issue will be used to pay down debt.
The company has significant capex plans. Last month, its chief financial officer had said the group’s capex this year would be in the region of ₹1.3 lakh crore, a significant portion of which would be for airports, followed by the new energy business which are being incubated by Adani Enterprises.
Adani Energy QIP
Group firm Adani Energy Solutions launched its QIP at a floor price of ₹1027.1125 per share, a 9.5 per cent discount to the closing price of the stock on the NSE on Tuesday.
The issue consists of a base size of $700 million and greenshoe option of $300 million.