Gautam Adani’s power transmission unit, Adani Energy Solutions Ltd., has selected investment banks to arrange a share sale that could raise at least Rs 50 billion ($597 million), according to people familiar with the matter.
Adani Energy Solutions is working with advisers, including ICICI Securities Ltd., Jefferies Financial Group Inc., and SBI Capital Markets, to prepare for the qualified institutional placement (QIP), the sources said. The share sale could be concluded by mid-August, Bloomberg News reported earlier this week.
Deliberations are ongoing, and details of the fundraising, including the bank lineup, could still change, the people said, asking not to be identified as the information is private. Representatives for ICICI Securities, Jefferies, and SBI Capital declined to comment, while a representative for Adani couldn’t immediately comment.
A share sale by Adani Energy would mark the Indian conglomerate’s first foray into public equity markets since a short-seller’s report early last year wiped away billions in market value. The board of Adani Energy in May approved a plan to raise as much as Rs 125 billion through various methods.
Adani Energy is India’s largest private sector power utility and operates more than 21,100 circuit kilometers (ckm) of transmission lines, according to its website. The company has a target of ramping up to 30,000 ckm by 2030 by tapping both organic and inorganic growth opportunities, it said.
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