Adani Energy Solutions’ $1 billion qualified institutional placement (QIP) has been a huge success, being oversubscribed six times with a demand of over ₹50,000 crore. This QIP marks the first investment in Indian equities by three US-based funds: Duquesne Family Office, Driehaus Capital Management, and Jennison Associates.
Stanley Druckenmiller, founder of Duquesne Family Office, is renowned for his role in shorting the British pound in 1992, earning over a billion dollars. His fund, Duquesne Capital Management, had an average annual return of 30% from 1986 to 2010. Now, his family office manages about $3.4 billion in assets.
More than 125 institutional investors participated in Adani Energy’s fundraising, including prominent names like Blackrock, Abu Dhabi Investment Authority, and Qatar Investment Authority, along with domestic mutual funds such as SBI, HDFC, and LIC.
The QIP includes a base deal of ₹5,861 crore ($700 million) and an option to upsize by ₹2,512 crore ($300 million). The company plans to use the funds for capital expenditures, setting up transmission systems, installing smart meters, repaying debts, and other general corporate purposes.
Shares of Adani Energy rose by 1% on Wednesday, closing at ₹1,138. This is the first major equity fundraising by an Adani Group company since Adani Enterprises canceled its ₹20,000 crore public offer last year following a report by US short-seller Hindenburg, which alleged accounting fraud and stock manipulation.
Adani Energy, a leading private sector power transmission and distribution company in India, holds over a 35% market share and has power distribution licenses for Mumbai and Mundra SEZ.
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