Adani Energy Intends to Raise USD 1 Billion Through QIP

According to persons with knowledge of the situation, Adani Energy Solutions is anticipated to begin a qualified institutional placement (QIP) this week or next in order to raise funds up to $1 billion (₹8,400 crore). In order to finance growth, the board of the Adani Group's power transmission division authorized in May financing ₹12,500 crore through shares.

"Adani Energy is set to launch its QIP after a month of roadshows with GQG Partners, Qatar Investment Authority, two US-based funds new to India, and domestic mutual funds showing interest," according to one of the individuals quoted. "The QIP is expected to be launched later this week or early next week to raise around $700-800 million, with the potential to increase it to $1 billion in case of demand." ICICI Securities, SBI Capital Markets, and Jefferies have all been named advisors to the firm.

Adani Energy finished Monday flat at ₹1,052.25, having gained 5.4% over the last month compared to the Sensex's 2.94% increase. After obtaining the necessary funds, Adani Enterprises canceled its ₹20,000 crore follow-on public offer (FPO) in February of last year. This will be the first equity fundraising by an Adani Group entity since then.

It reimbursed the funds generated in the biggest FPO in the nation after the Adani Group stock price experienced a significant decline due to a negative report released by US short-seller Hindenburg. The study claimed that the organization had engaged in accounting fraud and stock price manipulation, setting off a stock market meltdown that, at its lowest point, destroyed around $150 billion (Rs 12.5 lakh crore) in market value. Since then, the stocks have recovered the losses, and the Adani Group has categorically disputed all of the accusations.

Last year, the boards approved Adani Enterprises and Adani Energy's plans to raise Rs 12,500 crore and Rs 8,500 crore, respectively, through QIPs. However, the fundraising plans were ultimately abandoned. In May, the Adani Energy board extended the clearance.

Adani Energy holds a market share of more than 35% and is one of the top private sector power transmission and distribution (T&D) firms in India. The business is also licensed to distribute electricity in Mundra SEZ and Mumbai. It manages about 37,000 megavolt-amperes (MVA) of power transformation capacity in addition to more than 18,000 circuit kilometers (ckm) of transmission lines.

For the quarter that concluded on June 30, Adani Energy recorded operating revenue of Rs 5,379 crore, a 47% increase over the same period the previous year at Rs 3,664 crore. In comparison to a net profit of Rs 175 crore during the same time previous year, the firm reported a combined net loss of Rs 824 crore for the quarter.

The company's filing said that an extraordinary item was the cause of the loss.

Referring to Indian accounting rules, the statement stated: "In keeping with its ESG (environmental, social, and governance) commitment, the company decided to divest the Dahanu thermal plant in Q1FY25, resulting in an exceptional item of Rs 1,506 crore in line with Ind AS 105." "The financial numbers are, therefore, adjusted for this exceptional item."

Jefferies stated that the June quarter ebitda was 6% higher than expected and recommended Adani Green shares on Thursday with a "buy" rating and a target price of Rs 1,365.