Adani Energy Solutions Ltd (AESL) has achieved a significant milestone by raising Rs 8,373 crore ($1 billion) through a qualified institutional placement (QIP), marking the largest such fundraise in India's power sector. The announcement came on Monday, following the launch of the QIP on July 30, which initially targeted a base deal size of Rs 5,861 crore ($700 million), with an option to scale up to Rs 8,373 crore ($1 billion).
The QIP attracted substantial interest, receiving bids amounting to approximately six times the base deal size. This strong demand came from a diverse array of investors, including utility-focused US investors entering the Indian market for the first time, sovereign wealth funds, major Indian mutual funds, and insurance companies.
This QIP represents AESL's first equity raise in the capital markets since its demerger and listing from Adani Enterprises Limited (AEL) in July 2015. The company intends to use the funds to invest in transmission assets, expand its smart metering business, repay debt, and for general corporate purposes.
Kandarp Patel, Chief Executive Officer of AESL, commented, “India's robust investment cycle and rising power demand are encouraging signs for the power sector. The significant interest from institutional investors underscores their confidence in India’s energy transition, where AESL is a key player”. Patel emphasized that Adani Energy Solutions is committed to delivering electricity in a reliable, affordable, and sustainable manner, playing a crucial role in India's energy transition.
Patel further noted, “The overwhelming response to our QIP highlights the strong confidence investors have in our business model, execution capabilities, and effective capital allocation strategy, which are driving substantial growth and shareholder value.”
Notable participants in the QIP included Stanley Druckenmiller’s family office-led investment firm and US-based funds Driehaus Capital Management and Jennison Associates. AESL reported a 73% increase in net profit for Q1 FY25, with a 43% rise in revenue year-on-year, reflecting its strong market performance and investor confidence.