Adani Energy Solutions raises $1 billion via QIP route

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Adani Energy Solutions Ltd (formerly known as Adani Transmission Ltd) announced this week that it has successfully completed its INR 8,373 crore ($1 billion) qualified institutional placement (QIP), the largest in India’s power sector. This QIP marks AESL’s first equity raise in the capital market since its demerger and listing from Adani Enterprises Ltd (AEL) in July 2015.

The transaction was launched on July 30, 2024 with a base deal size of INR 5,861 crore ($700 million) and included a green shoe option to size up to INR 8,373 crore ($1 billion).

“The QIP saw overwhelming demand, receiving bids of approximately 6x of the base deal size from a diverse group of investors, including utility-focused US investors entering India 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, raising the total issue size to $1 billion,” stated AESL.

AESL will utilize the proceeds from the QIP for building the bulk evacuation corridors for renewable power, smart metering business, debt repayment, and general corporate purposes.

AESL, part of the Adani portfolio, is present in various facets of the energy domain, namely power transmission, distribution, smart metering, and cooling solutions. It is the nation’s largest private transmission company with a cumulative transmission network of 21,187 ckm and 57,186 MVA transformation capacity as on June 30, 2024. In its retail electricity distribution business, as on June 30, 2024, AESL serves around 13 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ. AESL is ramping up its smart metering business and is on course to become India’s leading smart metering integrator.

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