Adani Enterprises Raises $500 Million via QIP Amid $1.5 Billion Investor Rush – GQG, SBI, HDFC Among Key Backers

Mumbai: Adani Enterprises has raised $500 million through a qualified institutional placement (QIP) that opened on Wednesday, according to sources familiar with the deal. Despite strong interest from investors, the company decided not to use the additional $500 million greenshoe option. The QIP attracted orders worth over $1.5 billion but was limited to a base size of $500 million.

Key investors in this round include GQG Partners, Quant Mutual Fund, SBI General Insurance, SBI Life Insurance, and HDFC Life Insurance, along with a few ultra-high net worth individuals.

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The floor price for the QIP was set at ₹2,962 per share. On Thursday, shares of Adani Enterprises closed 0.65% higher at ₹3,173.30 on the BSE.

GQG Partners, led by Rajiv Jain, initially bought a 4.1% stake in Adani Enterprises for ₹3,850 crore in March 2023. Since then, GQG has invested in several other Adani Group companies, including Adani Green Energy, Adani Transmission, and Adani Power. By August, the total value of GQG’s investments in Adani companies had crossed ₹80,000 crore.

Quant Mutual Fund holds stakes in Adani Power and Adani Green Energy, while SBI Life Insurance and HDFC Life Insurance have invested in various Adani Group businesses, including Adani Ports and Special Economic Zone and Adani Enterprises.

In May 2023, Adani Enterprises received board approval to raise up to ₹16,600 crore through one or more QIP rounds. With this latest QIP, the company has raised only a quarter of the approved amount. This is Adani Enterprises’ first equity fundraising since being accused of corporate governance issues by US-based short-seller Hindenburg in early 2023. The company had previously planned to raise ₹12,500 crore in May 2023 but later shelved the idea.

In August 2023, Adani Energy Solutions, another group company, successfully raised nearly $1 billion through a QIP, which was oversubscribed six times.

Adani Enterprises, the flagship of the Adani Group, manages businesses across various sectors, including metals, airports, and roads. The company is also reportedly in advanced talks with a Middle Eastern sovereign fund to raise $1 billion for its airport operations.