Adani Energy Solutions raises Rs 8,373 crore through QIP: Rediff Moneynews

New Delhi, Aug 5 (PTI) Adani Energy Solutions Limited (AESL) on Monday said it has raised Rs 8,373.10 crore under the Qualified Institutions Scheme to expand its renewable electricity distribution capacity.

As reported by AESL in its stock exchange filings, this is the company’s first capital raising transaction on the capital market since its spin-off from Adani Enterprises Limited (AEL) and listing on the stock exchange in July 2015.

“AESL has successfully completed a Qualified Institutional Placement (QIP) worth Rs 8,373 crore (US$ 1 billion), which is the largest investment in the Indian power sector,” the release said.

The transaction was initiated after the market close on July 30 with a base value of Rs 5,861 crore ($700 million) and included a green shoe option worth up to Rs 8,373 crore.

The QIP program has seen tremendous interest, receiving bids at around 6 times the underlying deal value from a diverse group of investors, including US utilities entering the Indian market for the first time, sovereign wealth funds, large Indian mutual funds and insurance companies.

Such strong interest allowed AESL to fully exercise the green shoe option, increasing the total value of the issue to USD 1 billion.

“The Management Committee of the Board of Directors has approved allotment of 8,57,89,959 ordinary shares of face value of Rs 10 each to eligible qualified institutional buyers at an issue price of Rs 976 per share (including premium of Rs 966 per share) and at a discount of Rs 51.1125 from the floor price of Rs 1,027.1125 per share, aggregating to Rs 8,373.10 crore,” the company said in a filing.

The company will use the proceeds to build evacuation corridors for renewable energy, which will increase energy efficiency and improve grid planning.

Additionally, the proceeds will be used to repay debt and strengthen the company’s overall operations.

“The strong interest from institutional investors reflects their commitment and belief in India’s energy transformation, in which AESL plays a key role.

“The overwhelming response to our QIP reflects strong investor confidence in our solid business model, execution capabilities and effective capital allocation strategy, which are driving strong growth and exceptional shareholder value,” said Kandarp Patel, CEO of AESL.