On Oct, 9, Adani Enterprises, the flagship of billionaire Gautam Adani, took notice as it launched the first phase of a qualified institutional planning (QIP) offering In the coming months, it plans to launch a QIP that closes so two to raise more money, so the company hopes to raise $500 million in this first round. The board approved a total fundraising of about Rs 16,600 crore ($2 billion) in May.
Insiders say that although the QIP has a base size of $500 million, Adani Enterprises could use a “green shoe” option to raise additional funds if investor demand strengthens. The project may decide to delay implementation of this option until it focuses its fundraising efforts on a new QIP over the next few months.
The product has already created a lot of demand from investors, and major Gulf sovereign banks like Rajiv Jain’s GQG Partners, Abu Dhabi Investment Authority (ADIA), and Qatar Investment Authority have all indicated interest in it. The decision to accelerate the QIP—which was initially slated to conclude at the end of the month—was prompted by the escalating turmoil in the Middle East and its effects on international stock markets.
Adani Enterprises will use the money from the QIP to finance capital projects and lower the debt owed by the business and its subsidiaries. The organization, acknowledged as the birthplace of Adani Group’s latest endeavors, oversees significant businesses in industries like infrastructure, mining, green hydrogen, airports, and data centers.
Adani Energy Solutions, the company’s transmission and power distribution division, took such a step in July when it raised $1 billion through its QIP. Oversold by nearly six times, the offering attracted participation from domestic mutual funds such as SBI MF and HDFC MF and international investors such as GQG and BlackRock
Adani Enterprises also made its debut in the retail non-convertible debenture (NCD) market in September, raising Rs 800 crore from retail investors with a strong response on the first day of the offering in line with the group’s flagship strategy namely to reduce risk and align diversity with sources of income. To do this, Adani Group wants to raise Rs 30,000 crore to Rs 40,000 crore from retail investors in the next few years.
Adani Enterprises pursues the Group’s growth and innovation by maintaining its position as a leader in many sectors through strong investors and intelligent capital management.
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