Adani Energy Solutions Limited (AESL) has successfully raised INR 8,373 crores (USD 1 billion) through a Qualified Institutional Placement (QIP), marking the largest equity raise in India’s power sector to date. This milestone highlights AESL’s leadership in India’s energy transition and demonstrates strong investor confidence in the nation’s power sector.
This QIP is AESL’s first equity raise in the capital markets since its demerger from Adani Enterprises Limited (AEL) in July 2015. Since its listing, AESL has maintained consistent double-digit EBITDA growth, validating AEL’s incubation model.
Launched after market hours on July 30, 2024, the transaction began with a base deal size of INR 5,861 crores (USD 700 million) and included a green shoe option, which was fully exercised due to strong demand. The QIP was oversubscribed nearly six times, attracting a diverse group of investors, including U.S. utility-focused investors entering India for the first time, sovereign wealth funds, major Indian mutual funds, and insurance companies.
AESL has established itself as a key player in India’s energy transition by focusing on areas such as renewable power transmission, renewable power penetration, energy efficiency, and innovative cooling solutions. The funds raised through the QIP will be allocated towards investments in transmission assets, enhancing the smart metering business, debt repayment, and general corporate purposes.
Kandarp Patel, CEO of AESL, commented, “India’s strong investment cycle and rising power demand are promising for the power sector. The overwhelming response to our QIP reflects the strong confidence investors have in our business model, execution capabilities, and our role in India’s energy transition. AESL is committed to revolutionizing electricity delivery in a reliable, affordable, and sustainable manner, contributing significantly to India’s energy transition.”
Advisors and Managers:
Advisor to AESL: Cantor Fitzgerald & Co;
Book Running Lead Managers: SBI Capital Markets Limited, Jefferies India Private Limited, and ICICI Securities Limited.
Legal Counsel to AESL as to Indian law: Cyril Amarchand Mangaldas team comprising of Yash J. Ashar, Devaki Mankad, Jhalak Shah, Rishav Buxi, Hitesh Nagpal, Arikta Shetty and Lajja Mehta.
Legal Counsels to the Book Running Lead Managers as to Indian law and international law: Trilegal team comprising of Richa Choudhary, Avanti Kale, Maitreya Rajurkar, Sanya Chaudhari, Pooja Tada, Aman Bahl, Urmil Shah, Mathangi K. and Archit Jain.
Latham & Watkins LLP team comprising of Rajiv Gupta, Esha Goel, Isabel Yu, Watanatornpitak and Li-kang (Jeff) Ker.
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