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Adani Energy Solutions Limited (AESL) announced today the successful completion of its INR 8,373 crores (USD 1 billion) Qualified Institutional Placement (QIP), marking the largest transaction of its kind in India’s power sector. This achievement underscores AESL’s leading role in India’s energy transition and highlights strong investor confidence in the nation’s power sector.
This QIP represents AESL’s first equity raise in the capital markets since its demerger and subsequent listing from Adani Enterprises Limited (AEL) in July 2015. The company’s consistent double-digit EBITDA growth since 2016 reflects the success of AEL’s incubation model.
Launched after market hours on July 30, 2024, the QIP initially offered a base deal size of INR 5,861 crores (USD 700 million), with a green shoe option to increase the total to INR 8,373 crores (USD 1 billion). The offering saw exceptional demand, with bids amounting to approximately six times the base deal size. This interest came from a diverse investor base, including utility-focused US investors entering the Indian market for the first time, sovereign wealth funds, major Indian mutual funds, and insurance companies, allowing AESL to fully utilize the green shoe option.
AESL is a key player in India’s energy transition, focusing on several critical areas:
Renewable Power Transmission: Investments in projects such as Khavda in Gujarat and Rajasthan for bulk renewable power evacuation.
Renewable Power Penetration: Achieving a 37% share of renewable power in Mumbai and planning further increases.
Energy Efficiency: Leading India’s smart meter installation initiative and partnering with industrial and commercial entities to enhance energy efficiency.
Cooling Solutions: Investing in energy reduction through innovative Cooling as a Solution (CaaS) offerings.
Dispatchable Renewable Energy: Delivering reliable renewable energy solutions to commercial and industrial customers as a preferred retail energy partner.
The QIP funds will be allocated as follows:
Transmission Assets: Developing bulk evacuation corridors for renewable power.
Smart Metering Business: Boosting energy efficiency and network planning.
Debt Repayment: Reducing existing debt.
General Corporate Purposes: Enhancing overall corporate operations.
Mr. Kandarp Patel, Chief Executive Officer of AESL, commented, “India’s robust investment cycle and increasing power demand are promising for the power sector. The strong interest from institutional investors demonstrates their confidence in India’s energy transition, in which AESL is central. Our successful QIP highlights the trust investors place in our business model, execution capabilities, and capital allocation strategy, driving significant growth and shareholder value.” |
