Adani Energy Solutions Raises Rs 8,373 Crore via QIP

New Delhi, Aug 5 (PTI) Adani Energy Solutions Limited (AESL) on Monday said it has raised Rs 8,373.10 crore through qualified institutions placement route to build capacity for evacuation of electricity from renewable sources.

It is the company's first equity raise in the capital market since its demerger and listing from Adani Enterprises Limited (AEL) in July 2015, AESL said in an exchange filing.

"AESL has successfully completed its Rs 8,373 crore (USD 1 billion) Qualified Institutional Placement (QIP), the largest in India's power sector," it said.

The transaction was launched post-market hours on July 30 with a base deal size of Rs 5,861 crore (USD 700 million) and included a green shoe option of up to Rs 8,373 crore.

The QIP witnessed overwhelming demand, receiving bids of approximately 6X of the base deal size from a diverse group of investors, including utility-focused US investors entering India for the first time, sovereign wealth funds, major Indian mutual funds, and insurance companies.

This strong interest enabled AESL to fully exercise the green shoe option, raising the total issue size to USD 1 billion.

"The management committee of the board of directors approved the allotment of 8,57,89,959 equity shares of face value Rs 10 each to eligible qualified institutional buyers at the issue price of Rs 976 per equity Share (including a premium of Rs 966 per share) and reflecting a discount of Rs 51.1125 on the floor price of Rs 1,027.1125 per share, aggregating to Rs 8,373.10 crore," the company filing said.

The company will utilise the proceeds towards building the bulk evacuation corridors for renewable power, enhancing energy efficiency and improving network planning.

Besides, the proceeds will be used to make debt repayments and strengthen overall corporate activities.

"The strong interest from institutional investors reflects their commitment to and belief in India's energy transition, in which AESL plays a pivotal role.

"The overwhelming response to our QIP reflects the strong confidence that investors have in our robust business model, execution capabilities, and effective capital allocation strategy, driving strong growth and exceptional shareholder value," Kandarp Patel, Chief Executive Officer of AESL said.