Adani Enterprises Ltd. on Thursday said that the proceeds from the completion of its qualified institutional placement will be utilised for "funding capital expenditure, debt repayment and general corporate purposes".
Through the QIP issue, Adani Enterprises raised Rs 4,200 crore or approximately $500 million, a media release stated. The company allocated more than 1.41 crore equity shares at an issue price of Rs 2,962 per share via the QIP.
The transaction was launched after market hours on Oct. 9 with a deal size of approximately Rs 4,200 crores, and closed on Oct. 15.
The QIP received bids of approximately 4.2 times the deal size from a variety of investors, including global long-only investors, major Indian mutual funds, and insurance companies, the company said.
Quant Mutual Fund's Quant ELSS Tax Saver Fund was reported to be the largest participant, having acquired 46.97% of the total shares issued under the QIP. Winro Commercial (India) Ltd. acquired 12.5%, Tree Line Asia Master Fund (Singapore) Pte. bought 5.9% and SBI Life Insurance Co. acquired 5.05%.
"This milestone underscores AEL's position as India's largest listed incubator of scalable and large businesses in core infrastructure which addresses the needs of India," the company said.
Shares of Adani Enterprises closed 2.34% lower at Rs 3,013.75 apiece on the NSE, compared to a 0.89% decline in the benchmark Nifty 50.
The stock has risen by 5.78% on a year-to-date basis and by 24.1% over the past 12 months.
All the three analysts tracking the company have a 'buy' rating on its stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 40.4%.
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