Adani Energy share sale oversubscribed three times as investor demand soars: Report

Adani Energy QIP: Adani Energy Solutions Ltd., the power transmission unit of billionaire Gautam Adani’s conglomerate, has received bids more than three times the amount it plans to raise from a share sale, reflecting robust investor interest.

Both Indian and international institutions have shown strong enthusiasm for Adani Energy’s $1 billion share sale through a qualified institutional placement (QIP), Bloomberg News reported, quoting sources familiar with the matter.

This share sale marks the first equity fundraising by an Adani Group unit following the damaging report released by short-seller Hindenburg Research in January 2023, which alleged widespread corporate malfeasance by the conglomerate. The Adani Group has consistently denied these allegations. The sale also follows a similar $1 billion share sale by Vedanta Ltd. earlier in July.

The planned $1 billion share sale consists of a base issue size of $700 million, with an option to raise the remaining amount. The shares are offered at an indicative price of Rs 976, according to the deal terms obtained by Bloomberg News.

Last week, Bloomberg reported that Adani Energy would raise at least $600 million through the share sale and had selected domestic investment banks to manage the process.

Adani Energy, India’s largest private-sector power utility, operates over 21,100 circuit kilometers (ckm) of transmission lines, according to its website. The company aims to expand this to 30,000 ckm by 2030, leveraging both organic and inorganic growth opportunities.

The significant oversubscription highlights the strong investor confidence in Adani Energy’s growth prospects and the overall resilience of the Adani Group despite recent controversies.