Adani Energy Solutions raises USD 1 bn in record Qualified Institutional Placement

Ahmedabad (Gujarat) [India], August 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.
Kandarp Patel, Chief Executive Officer of AESL, expressed his enthusiasm about the successful QIP, stating, "India's robust investment cycle and rising power demand are positive indicators for the power sector. The strong interest from institutional investors reflects their commitment to and belief in India's energy transition, in which AESL plays a pivotal role. AESL is revolutionizing the delivery of electricity to end consumers in a reliable, affordable, and sustainable manner, contributing significantly to India's energy transition."
He added, "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."
The QIP was advised by Cantor Fitzgerald & Co., with SBI Capital Markets Limited, Jefferies India Private Limited, and ICICI Securities Limited serving as Book Running Lead Managers.
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.