Adani Energy raises $1 billion through record share sale

Adani Energy Solutions Limited has raised $1 billion through a share sale marking the largest deal in the energy sector of the country, according to media reports. The power transmission firm of the Adani Group raised the staggering amount through a Qualified Institutional Placement (QIP) issue on Tuesday that witnessed oversubscription thrice over, with demand reaching Rs 26,000 crore.

The issue, which is priced at Rs 976 per share, closed at Rs 1,135, marking a discount in listing of around 14 per cent. Participants in the issue include domestic companies such as Nomura, Bandhan Mutual Fund and 360 India Infoline, while the Florida-based GQG Partners, Abu Dhabi Investment Authority (ADIA) and Qatar Investment Authority (QIA) are said to be among international investors in the QIP, which is a process that listed companies use to generate funds from other big companies.

Adani Group’s performance in the market has been making news lately. On Tuesday, reports that the conglomerate’s flagship, Adani Enterprises, might launch a public issue of bonds for the first time ever by the middle of August this year had a positive impact on the company’s share. The news report, which appeared in Reuters, stating that Adani Enterprises could raise Rs 600 crore as part of the public issue. Following the report, shares of Adani Enterprises traded 0.56 per cent higher at Rs 3,106.05 on the BSE Sensex. A draft prospectus of the public issue had been adopted after approval on Thursday, July 25 and a day later, on July 26, Adani Enterprises notified the BSE and the NSE that the company had plans to launch a public issue of Non-Convertible Debentures valued at Rs 1,000 each. The maximum worth of the public issue would be Rs 300 crore with an over-subscription option of Rs 300 crore, thus adding up to Rs 600 crore.

On Tuesday, the Adani Energy share sold at Rs 1,125.40 on the BSE, marking a 6.95 per cent surge when market closed. While the group has been recovering impressively in the market following the Hindenburg controversy of January 2023, the Adani Energy share is still performing at a 60 per cent lesser rate than the pre-Hindenburg days.

The US-based short-seller Hindenburg Research had published a damaging report in January last year that claimed the Adani Group rampantly misused overseas tax havens, and routinely engaged in manipulation of stock and fraud of account. The conglomerate had witnessed market value worth $150 billion being destroyed following the Hindenburg report, although there has been recovery for the group over the past few months.