A recent stock exchange filing revealed that Qatar Investment Authority, SBI Mutual Fund, and foreign investment funds Nomura and Citigroup were the largest investors in Adani Group’s power transmission unit’s USD 1 billion Qualified Institutional Placement (QIP).
The QIP, totaling Rs 8,373.10 crore (USD 1 billion), concluded last week and attracted interest from over 120 investors in Adani Energy Solutions Ltd (AESL), a company specializing in power transmission, distribution, and smart metering.
The filing noted that the board approved the allocation of over 8.57 crore shares to eligible institutional buyers at an issue price of Rs 976 per share, representing a discount of Rs 51.11 (4.98%) from the floor price of Rs 1,027.
Among the significant allottees, INQ Holdings LLC, a subsidiary of QIA, acquired 15% of the shares. Citigroup’s Mauritius funds purchased 8.88%, while SBI funds, including SBI Infrastructure Fund, SBI Large & Midcap Fund, SBI Long Term Advantage Fund Series IV, and SBI Magnum Children’s Benefit Fund, collectively obtained 7.93%. Nomura Singapore Ltd ODI secured 7.5%.
INQ Holdings had previously acquired a 2.7% stake in Adani Green Energy Ltd and in 2020, a stake in Adani Electricity Mumbai Ltd, a subsidiary of AESL.
The QIP was oversubscribed six times, with demand exceeding Rs 50,000 crore against the USD 1 billion issue size, making it the largest public equity raise in the energy sector. Notable long-only investors, including Duquesne Family Office, Driehaus Capital Management, and Jennison Associates, participated in the QIP.
This marks the first public equity raise by the conglomerate since the Hindenburg report last year, which severely impacted shareholder value. Despite denials of the report’s allegations, the successful QIP is seen as a strong endorsement of investor confidence in the group.
Adani Enterprises Ltd, the group’s flagship company, is also preparing to revive its initial bond sale, aiming to raise up to Rs 600 crore. The group had previously entered the dollar bond market in March this year, marking its first return since the Hindenburg report, with its solar energy unit Adani Green Energy Ltd and associated firms receiving bids of about USD 2.9 billion.
