Adani Enterprises Begins QIP Process With ₹1 Face Value Equity Shares

Adani Enterprises Limited, a leading multinational conglomerate, has initiated the Qualified Institutions Placement (QIP) of its equity shares, marking a significant step in its strategic capital-raising efforts. The company made the announcement following the approval of the QIP Committee at its meeting today, with the opening of the Issue scheduled for today, October 9, 2024.

Key Details of the QIP

Adani Enterprises is offering equity shares of face value ₹1 each under the provisions of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (SEBI ICDR Regulations) and in accordance with the Companies Act, 2013. This move comes after the company’s Board of Directors approved the QIP process at its meeting held on May 28, 2024, and following a special resolution passed on June 24, 2024.

The QIP Committee met today and passed key resolutions including:

Authorization to Open the Issue: The committee formally authorized the opening of the QIP today, October 9, 2024.

Approval of Floor Price: The floor price for the issue has been determined as per the pricing formula prescribed by the SEBI ICDR Regulations.

Adoption of Preliminary Placement Document: The preliminary placement document dated October 9, 2024, and the related application forms have been approved and adopted by the committee.

Floor Price and Relevant Date

In line with the SEBI ICDR Regulations, the ‘Relevant Date’ for the issue has been set as October 9, 2024, which determines the floor price for the equity shares. Based on the prescribed pricing formula, the floor price for the QIP has been fixed at ₹3,117.4750 per equity share.

Further, as per the SEBI guidelines, the company has the option to offer a discount of up to 5% on the floor price, which it may choose to exercise at its discretion.

Leading Book Running Managers Appointed

The QIP process will be managed by three renowned financial institutions. SBI Capital Markets Limited, Jefferies India Private Limited, and ICICI Securities Limited have been appointed as the Book Running Lead Managers (BRLMs) for the offering. Additionally, Cantor Fitzgerald & Co. has been appointed as an advisor to assist the company in the process.

Objective of the QIP

The Qualified Institutions Placement is part of Adani Enterprises’ strategy to raise funds to support its business growth, expansion plans, and strengthen its balance sheet. The funds raised through this offering will help the company scale its operations, invest in infrastructure, and support its diversified business portfolio across key sectors including energy, infrastructure, logistics, and real estate.

Regulatory Filings

In compliance with regulatory requirements, Adani Enterprises has filed the preliminary placement document with the BSE Limited and National Stock Exchange of India Limited on the same day, October 9, 2024.

A Global Perspective

It is important to note that the equity shares offered through this QIP are not being registered under the U.S. Securities Act of 1933, and as such, cannot be sold or offered within the United States, unless in a transaction exempt from registration requirements. The company has clarified that this is not a public offering in the U.S. market.

The launch of the QIP reflects Adani Enterprises’ commitment to enhancing its financial position and expanding its operations across multiple sectors. With strong support from top-tier financial institutions, the company is poised to attract institutional investors and accelerate its growth trajectory in the coming years.

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