Gujarat,AUG 5
Adani Energy Solutions Limited (AESL) has achieved a milestone by raising Rs 8,373 crore (USD 1 billion) through its Qualified Institutional Placement (QIP), marking the largest QIP ever conducted in India’s power sector.According to a press release, the QIP, which is AESL’s first equity raise since its demerger and listing from Adani Enterprises Limited (AEL) in July 2015, was launched post-market hours on 30 July 2024.
The initial base deal size was set at Rs 5,861 crore (USD 700 million), with a green shoe option allowing for an increase to Rs 8,373 crore (USD 1 billion).The offering saw overwhelming demand, with bids approximately six times the base deal size from a diverse group of investors. These included utility-focused US investors entering the Indian market 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, successfully raising the total issue size to USD 1 billion.AESL has firmly established itself as a key player in India’s energy transition, focusing on several critical areas.The company has invested significantly in renewable power transmission projects, such as the Khavda project in Gujarat and various initiatives in Rajasthan, aimed at facilitating bulk renewable power evacuation. It has also achieved a 37 per cent renewable power distribution in Mumbai and is working to expand this further.
In addition, AESL is at the forefront of India’s smart meter installation program and collaborates with industrial and commercial entities to enhance energy efficiency. The company is also investing in reducing energy intensity through innovative Cooling as a Solution (CaaS) offerings and provides reliable renewable energy solutions to commercial and industrial clients.
The proceeds from the QIP will be strategically allocated to several key areas. Investments will be made in transmission assets to develop corridors for bulk renewable power evacuation, enhance the smart metering business to improve energy efficiency and network planning, and repay debt to reduce the company’s indebtedness. Additionally, funds will be used for general corporate purposes to bolster overall corporate operations.Legal counsel for AESL was provided by Cyril Amarchand Mangaldas, while Trilegal and Latham & Watkins LLP advised the Book Running Lead Managers on Indian law and international law, respectively.
