Billionaire Stanley Druckenmiller’s Family Office Makes Maiden Bet In 6x Oversubscribed $1 Billion Adani Power Transmission Unit Sale

Billionaire Stanley Druckenmiller’s family office-led investment firms have made their maiden bet on the Adani group, seeking shares of the conglomerate’s power transmission unit in an institutional sale that was oversubscribed six times, with demand exceeding Rs 50,000 crore against an issue size of USD 1 billion.

Institutional Sale Oversubscribed Six Times, Generates Rs 50,000 Crore Demand

Duquesne Family Office, along with two other US-based long-only funds, Driehaus Capital Management and Jennison Associates, invested in the qualified institutional placement (QIP) of Adani Energy Solutions, sources with direct knowledge of the matter said. The Rs 8,340 crore (USD 1 billion) issue saw over 120 investors seek shares in the firm, which is involved in power transmission, distribution, and smart metering business.

Prestigious Long-Only Investors Debut in Adani Group

Sources indicated that this issue marked the debut of prestigious long-only investors Duquesne Family Office, Driehaus Capital Management, and Jennison Associates, known for their strong performance and commitment to companies with high governance standards. The QIP was the first public equity raise by the conglomerate since a damaging Hindenburg report last year, which had erased billions in shareholder value. The demand generated made the Adani Energy Solution Ltd QIP the largest in the energy sector. Adani Energy Solutions’ stock gained over 15 percent intraday on Thursday before closing 11.24 percent higher in Mumbai.

Adani Energy Solutions’ Stock Sees Major Surge

Duquesne, founded by billionaire Stanley Druckenmiller, is renowned for its significant financial maneuvers, including its famous shorting of the British pound in 1992 with George Soros. Adani Group has a history of attracting notable long-only investors. In recent years, it has brought in large investors such as GQG Partners, Qatar Investment Authority (QIA), and International Holding Company (IHC). Existing investors of the Adani group also participated in the QIP, sources said.

Adani Enterprises Plans Bond Sale Amid Recovery Efforts

Other major global names that participated in the QIP include BlackRock, Jupiter Asset Management, Nomura Asset Management, and Eastspring. Domestic mutual funds participating included SBI Mutual Fund, HDFC Mutual Fund, Axis Mutual Fund, Bandhan Mutual Fund, LIC, WhiteOak, 360One, among others. Insurance companies, including SBI Insurance, SBI Pension, and ASK Asset Management, also participated, according to the sources.

A QIP is an instrument used by listed companies to raise funds from large institutions. This fundraise is the first after Adani group’s flagship firm canceled a Rs 20,000 crore issue in February last year following the Hindenburg report, which alleged accounting fraud and stock manipulation. While the group has denied all allegations, its listed companies at one point saw over USD 150 billion of their market value wiped out. Although the group has largely recovered, a successful QIP is seen as a strong vote of investor confidence in the tycoon.

Separately, Adani Enterprises Ltd, the flagship firm of the group, is looking to revive its first-ever public sale of bonds, planning to raise up to Rs 600 crore. The company has hired Trust Investment Advisors, AK Capital Services, and Nuvama Wealth Management as lead managers for the issuances. Earlier this year, in March, the group tapped the dollar bond market for the first time since the Hindenburg report, with its solar energy unit Adani Green Energy Ltd and associated firms receiving bids of approximately USD 2.9 billion. PTI.

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