Adani Energy Solutions Limited (“AESL”) today announced that it has successfully completed its INR 8,373 crores (USD 1 billion) Qualified Institutional Placement (“QIP”), the largest in India’s power sector. This milestone underscores AESL’s prominent position as a leader in India’s energy transition solutions and highlights investor confidence in the country’s power sector outlook.
This QIP marks AESL’s first equity raise in the capital markets since its demerger and listing from Adani Enterprises Limited (“AEL”) in July 2015. AESL’s consistent double-digit EBITDA growth since 2016 is a testament to AEL’s successful incubation model.
The transaction was launched after market hours on July 30, 2024, with a base deal size of INR 5,861 crore (USD 700 million) and included a green shoe option to increase the size up to INR 8,373 crore (USD 1 billion).
The QIP saw overwhelming demand, with bids approximately 6 times 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 USD 1 billion.
AESL has emerged as a pivotal player in India’s energy transition solutions, focusing on key areas such as:
The proceeds from the QIP will be utilized for:
“India’s robust investment cycle and rising power demand are positive indicators for the power sector. The strong interest from institutional investors reflects their commitment to and belief in India’s energy transition, in which AESL plays a pivotal role. AESL is revolutionizing the delivery of electricity to end consumers in a reliable, affordable, and sustainable manner, contributing significantly to India’s energy transition. The overwhelming response to our QIP reflects the strong confidence that investors have in our robust business model, execution capabilities, and effective capital allocation strategy, driving strong growth and exceptional shareholder value,” said Mr. Kandarp Patel, Chief Executive Officer of AESL.
Advisors and Managers:
About Adani Energy Solutions Limited (AESL): AESL, part of the Adani portfolio, is a multidimensional organization with a presence in various facets of the energy domain, including power transmission, distribution, smart metering, and cooling solutions. AESL is the country’s largest private transmission company with a cumulative transmission network of 21,187 ckm and 57,186 MVA transformation capacity as of June 30, 2024. In its retail electricity distribution business, AESL serves approximately 13 million consumers in metropolitan Mumbai and the industrial hub of Mundra SEZ as of June 30, 2024. AESL is ramping up its smart metering business and is on track to become India’s leading smart metering integrator. With its integrated offerings through the expansion of its distribution network via parallel licenses and tailored retail solutions, including a significant share of green power, AESL is revolutionizing the delivery of energy to end consumers. AESL is a catalyst for transforming the energy landscape in the most reliable, affordable, and sustainable way.
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