Adani Energy Solutions Raises US$ 1 Billion in Record-Qualified Institutional Placement

06 Aug 2024

Adani Energy Solutions Limited (AESL) has achieved a significant milestone by raising a sum of Rs 8,373 crore (US$ 1 billion) through its Qualified Institutional Placement (QIP), marking the largest ever QIP in India's power sector.

As per a press release, the QIP, which represents AESL's initial equity raise since its demerger and listing from Adani Enterprises Limited (AEL) in July 2015, was launched subsequent to market close on July 30, 2024. The initial deal size was fixed at Rs 5,861 crore (US$ 700 million), with a green shoe option allowing an increase to up to Rs 8,373 crore (US$ 1 billion).

The offering was highly competitive, with bids coming in nearly six times higher from a diverse group of investors. These comprised utility-focused US investors who were making their debut in the Indian market, sovereign wealth funds, leading Indian mutual funds, and insurance companies. This strong interest enabled AESL to exercise the green shoe option fully, successfully increasing the total issue size to US$1 billion.

AESL has established itself as a vital player in India's energy transformation, with a particular emphasis on several crucial domains. The company has made significant investments in renewable energy transmission projects, such as the Khavda project in Gujarat and various initiatives in Rajasthan, aimed at facilitating bulk renewable energy evacuation. It has also achieved 37 percent renewable energy distribution in Mumbai and is working to increase this further.