Adani Enterprises Ltd. has increased the size of its qualified institutional placement to Rs 15,000 crore after receiving strong investor demand for the share sale.
The qualified institutional placement opened on July 2 with a base issue size of Rs 10,000 crore. The company upsized the issue after receiving bids worth about Rs 38,000 crore, or 3.8 times the original offer, according to people familiar with the development.
The company has indicated an issue price of Rs 2,883 per equity share, a 5% discount to the Securities and Exchange Board of India's floor price of Rs 3,034.68 per share and a 9.27% discount to the July 2 closing price of Rs 3,177.50.
Adani Enterprises said it will use the proceeds to fund capital expenditure for the growth of its incubation businesses.
Global investors, Domestic Mutual Funds Back Issue
The share sale received participation from global investors including Capital Group, Goldman Sachs, BlackRock, Blackstone and Nomura, according to people familiar with the development.
Domestic participation came from HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, SBI Mutual Fund and Tata Mutual Fund, the people said.
The issue also saw participation from virtually every major mutual fund house, while several institutions sought allocations larger than those ultimately available, according to the people.
The qualified institutional placement was subscribed within 48 hours of the start of the roadshow, with total bids estimated at around 3.8 times the original Rs 10,000 crore base issue size, the people said.
Jefferies, SBI Capital Markets, ICICI Securities and IIFL Securities are the book-running lead managers for the issue.
According to the people, the fundraising marks Adani Enterprises' second major equity raise in the past year.
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(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
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