Adani Energy’s Rs 3,500 crore QIP oversubscribed 3.1 times as FIIs, MFs and Azim Premji firm make bids

Adani Energy Solutions’ Rs 3,500 crore qualified institutional placement (QIP) drew bids worth more than Rs 10,800 crore, with demand exceeding three times the issue size as domestic mutual funds, insurers, foreign investors and Azim Premji’s investment firm piled into the fundraising, according to people familiar with the matter.

The QIP was oversubscribed by 3.1 times and closed at an issue price of Rs 1,615 per share. Adani Energy Solutions did not exercise the greenshoe option despite the strong demand, keeping the fundraising at Rs 3,500 crore.

Domestic mutual funds and insurance companies were the biggest buyers. Among the participants were SBI Mutual Fund, ICICI Prudential Mutual Fund, Tata Mutual Fund, Aditya Birla Sun Life Mutual Fund, Kotak Mutual Fund and HSBC Mutual Fund.


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Foreign institutional investors Manulife and Fiera Capital also submitted bids. Kotak Life Insurance, ICICI Prudential Life Insurance and SBI Life Insurance were among the participating insurers, while Premji Invest was also a key bidder.

The institutional demand provides a strong read-through for Adani Energy’s ability to raise capital, even though the shares weakened in the secondary market. The stock fell as much as 3% to Rs 1,644.60 on the BSE during the day.

The issue price represented a 4.9% discount to the Securities and Exchange Board of India’s floor price of Rs 1,698.15 per share. It was also priced at a 5.18% discount to Adani Energy’s July 27 closing price of Rs 1,703.30.

At Rs 1,615 per share, the company will issue approximately 21.7 million equity shares. The QIP opened on July 27 with a base issue size of Rs 3,500 crore and an upsize option.

Adani Energy plans to deploy the proceeds towards capital expenditure, loan repayment, acquisitions, and general corporate purposes.

A qualified institutional placement allows listed companies to raise equity capital quickly from institutional investors, including mutual funds, insurers, pension funds and foreign institutional investors, without undertaking a public offering.

Jefferies, SBI Capital Markets, ICICI Securities and IIFL Securities were the book-running lead managers for the issue.