Adani Enterprises Limited (AEL), the flagship firm of the Adani Group, led by Gautam Adani, successfully raised Rs 4,200 crore ($500 million) through a Qualified Institutional Placement (QIP) to expand its initiatives. The equity offering closed on October 15, 2024, with the company allocating 1.41 crore equity shares at an issue price of Rs 2,962 per share to qualified institutional buyers (QIBs).
The QIP launch took place post-market hours on October 9, 2024, and received bids of nearly 4.2 times the offered deal size. Global long-only investors, Indian mutual funds, and insurance companies showed interest in the issue, underlining Adani Enterprises’ market appeal and growth prospects.
A QIP allows listed companies to raise capital efficiently by selling equity shares to institutional investors without extensive regulatory paperwork. This method is a preferred fundraising strategy for businesses seeking rapid capital infusions to fuel growth.
The Rs 4,200 crore raised through this QIP will be supporting Adani Enterprises’ growth plans. The company stated that the funds would be used for capital expenditure, debt repayment, and general corporate purposes. As India’s largest listed incubator of scalable infrastructure businesses, Adani Enterprises plays a vital role in addressing the country’s core infrastructure needs.
AEL’s current portfolio spans a wide range of sectors, including transport and logistics (airports and roads), renewable energy (solar and wind), and data centres. Additionally, the company is working in copper, PVC, defence, and specialised manufacturing, sectors that align with India’s Atmanirbhar Bharat initiative.
This fundraising comes after Adani Enterprises attempted to raise Rs 20,000 crore through a Follow-on Public Offer (FPO) last year. The FPO planned between Rs 3,112 and Rs 3,276 per share, faced a setback due to the release of a report by Hindenburg Research, which impacted the group’s stock prices. Although the FPO was fully subscribed, the company decided to withdraw the offer and return the proceeds.
However, the successful closure of this QIP demonstrates investor confidence in Adani Enterprises and its long-term vision. The QIP process was managed by SBI Capital Markets Limited, Jefferies India Private Limited, and ICICI Securities Limited as the book-running lead managers (BRLMs). The legal counsel team consisted of Cyril Amarchand Mangaldas, representing AEL under Indian law, while Trilegal and Latham & Watkins LLP advised the BRLMs on Indian and international law, respectively.
