Adani Energy Solutions raises $1 bn via QIP to invest in transmission, smart meter biz

The capital raised through the QIP will be used to invest in transmission assets, smart metering business, repayment of debt, and for general corporate purposes, the filing said.

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Adani Energy Solutions on August 5 said it has raised Rs 8,373 crore ($1 billion) through the qualified institutional placement (QIP) route.

The QIP was launched after market hours on July 30, with a base deal size of Rs 5,861 crore ($700 million) and included a green shoe option to size up to Rs 8,373 crore ($1 billion), the company said in an exchange filing.

The capital raised through the QIP will be used to invest in transmission assets, smart metering business, repayment of debt, and for general corporate purposes, the filing said.

“This milestone underscores Adani Energy Solutions Limited’s (AESL’s) prominent position as a leader in India's energy transition solutions and highlights investors’ confidence in the country's power sector outlook,” the firm said, adding that the QIP was the largest in the country’s power sector.

This was firm’s first equity raise since July 2015 when it was demerged from Adani Enterprises Limited and listed on the market, according to the filing.

According to the firm, the QIP received bids of nearly 6x of the base deal size from various investors, including utility-focused US investors entering India for the first time, sovereign wealth funds, Indian mutual funds, and insurance companies.

“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,” said Kandarp Patel, chief executive officer of AESL.