Adani Energy Solutions raises $1 billion in record qualified institutional placement, ET EnergyWorld

Ahmedabad (Gujarat) (India), August 5 (ANI): AdEnergy Solutions Limited (AESL) has achieved a milestone by raising Rs 8,373 crore (US$ 1 billion) through Qualified Institutional Placement (QIP). This is the largest ever QIP in the Indian power sector.

According to a press release, the QIP, which is AESL’s first equity issuance since the spin-off and listing of Adani Enterprises Limited (AEL) in July 2015, was launched after the close of trading on July 30, 2024. The initial underlying deal size has been set at Rs 5,861 crore ($700 million), with the green shoe option to increase it to Rs 8,373 crore ($1 billion).

The offering was met with overwhelming demand, with bids of around six times the underlying deal size from a diverse group of investors. These included utility-focused investors from the US entering the Indian market for the first time, sovereign wealth funds, large Indian mutual funds and insurance companies. This strong interest allowed AESL to fully exercise its green shoe, effectively increasing the total issue size to $1 billion.

AESL has established itself as a key player in India’s energy transformation by focusing on several key areas.

The company has invested significantly in renewable energy transmission projects such as the Khavda project in Gujarat and various initiatives in Rajasthan to facilitate mass evacuation of renewable energy. It has also achieved 37 percent renewable energy distribution in Mumbai and is working to expand it further.

In addition, AESL is spearheading India’s smart meter installation program and is working with industrial and commercial entities to improve energy efficiency. The company is also investing in reducing energy intensity through innovative Cooling as a Solution (CaaS) offerings and providing reliable renewable energy solutions to commercial and industrial customers.

The QIP proceeds will be strategically distributed across several key areas. Investments will be made in transmission assets to develop renewable energy evacuation corridors, enhance the smart meter business to improve energy efficiency and network planning, and repay debt to reduce the company’s debt. Additionally, the funds will be used for general corporate purposes to strengthen overall corporate operations.

Kandarp Patel, CEO, AESL expressed his enthusiasm on the success of QIP, stating, “India’s robust investment cycle and growing energy demand are positive indicators for the energy sector. The strong interest from institutional investors reflects their commitment and belief in India’s energy transformation, in which AESL is playing a key role. AESL is revolutionizing the delivery of electricity to end consumers in a reliable, affordable and sustainable manner, contributing significantly to India’s energy transformation.”

He added: “The overwhelming response to our QIP reflects strong investor confidence in our solid business model, execution capabilities and effective capital allocation strategy, which translates into strong growth and exceptional shareholder value.”

Cantor Fitzgerald & Co. acted as advisor to QIP, with SBI Capital Markets Limited, Jefferies India Private Limited and ICICI Securities Limited acting as lead book-running managers.

Legal advice to AESL was provided by Cyril Amarchand Mangaldas, while Trilegal and Latham & Watkins LLP advised the book-running managers on Indian and international law.