Adani Energy Solutions Ltd. has raised Rs 8,373 crore through qualified institutional placement and will use the proceeds for investment in transmission assets and smart metering business.
The base deal size was Rs 5,861 crore and included a green shoe option to size up to Rs 8,373 crore. The QIP received bids of approximately 6 times the base deal size from a diverse group of investors, according to a statement issued on Monday.
The QIP was launched last month and is the company's first equity raise in the capital market since its demerger and listing from Adani Enterprises Ltd. in July 2015.
The proceeds from the QIP will be used for investment in transmission assets, with a focus on building the bulk evacuation corridors for renewable power.
It will also deploy capital for the smart-metering business to enhance energy efficiency and improve network planning. Part of the proceeds will also be used for debt repayment and general corporate purposes.
Top investors in the Adani Energy QIP include INQ Holding LLC, an affiliate of Qatar's sovereign wealth fund QIA, Citigroup, Nomura and SBI Mutual Fund.
"The overwhelming response to our QIP reflects the strong confidence that investors have in our robust business model, execution capabilities, and effective capital allocation strategy, driving strong growth and exceptional shareholder value," said Chief Executive Officer Kandarp Patel.
Shares of Adani Energy Solutions closed 8.08% lower at Rs 1,159.1 apiece on Monday, as compared to a 2.74% decline in the benchmark BSE Sensex.
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