Adani Enterprises Shares in Focus: Finished QIP of ₹4,200 Crore

On October 17, 2024, Adani Enterprises Limited (AEL) announced in an exchange filing that it has successfully completed a Qualified Institutional Placement (QIP) of equity shares with a face value of ₹1 each, raising approximately ₹4,200 crores (USD 500 million). A total of 1,41,79,608 shares were allocated at an issue price of ₹2,962 per share.

The QIP was launched after market hours on October 9, 2024, with a target size of ₹ 4,200 crores, and it closed on October 15, 2024. The offering attracted strong demand, receiving bids of about 4.2 times the deal size from a diverse group of investors, including global long-only funds, major Indian mutual funds, and insurance companies.

This achievement reinforces AEL’s status as India’s largest publicly listed incubator of scalable businesses in core infrastructure, addressing the country’s essential needs. AEL’s current portfolio includes projects in airports and roads within the transport and logistics sector, as well as initiatives in the new energy ecosystem (including solar and wind manufacturing) and data centers in the energy and utility sector. Additionally, AEL is involved in copper, PVC, defence, and specialized manufacturing, focusing on import substitution in line with India’s Atmanirbhar Bharat vision.

The proceeds from the QIP will be allocated to capital expenditure, debt repayment, and general corporate purposes.

SBI Capital Markets Limited, Jefferies India Private Limited, and ICICI Securities Limited served as the book-running lead managers for the issue. Cantor Fitzgerald & Co. acted as an advisor, while Cyril Amarchand Mangaldas provided legal counsel to AEL in relation to Indian law. Trilegal and Latham & Watkins LLP served as legal counsels for the book-running lead managers regarding Indian and international law, respectively.

On October 18, 2024, Adani Enterprises shares opened at ₹2998.95 and touched the day low of ₹2969.20 at 09:35 AM, reflecting a fall of 5.50% from the previous close of 2,889.30. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.