Adani Energy Solutions raises $1 bn via QIP issue, first since Hindenburg row

This was the first ever public equity fundraise by Gautam Adani's ports-to-power conglomerate since the Hindenburg-led market rout, reports Mint.

According to reports, Adani Energy Solutions Ltd raised the funds through a qualified institutional placement (QIP) issue.

QIP is an instrument used by listed companies to raise funds from several large institutions.

The QIP, which opened on Tuesday (July 30), was oversubscribed three times with demand of about Rs 26,000 crore, making it the largest transaction in India's energy space, as reported by Mint.

The QIP closed at Rs 1,135 per share, as against the issue price of Rs 976 per share, or a 14 percent listing discount, reports Mint.

Qatar Investment Authority and Abu Dhabi Investment Authority invested in Adani Energy Solutions for the share sale, which was for $700 million, with a so-called greenshoe option for a further $300 million, Reuters reported.

Meanwhile, Adani Group's flagship firm Adani Enterprises Ltd is separately looking to revive its first-ever public bond sale as the company plans to raise as much as Rs 600 crore.

According to a report by Mint, Adani Enterprises has hired Trust Investment Advisors, AK Capital Services and Nuvama Wealth Management as lead managers for the issuances.

For the first time since the Hindenburg report was released, Adani Group tapped the dollar bond market in March this year when its solar energy unit Adani Green Energy and associated firms received bids of about $2.9 billion.

Adani Energy Solutions, in a stock exchange filing, said that its management authorised the opening of the issue on Tuesday (July 30) and approved the floor price, which was set at Rs 1,027 per equity share, as reported by Mint.