Adani Enterprises raises $500 million to pursue growth plans

By Sandy Verma On Oct 18, 2024

AHMEDABAD Ahmedabad: Adani Enterprises Ltd (AEL) on Thursday said it has successfully raised primary equity of $500 million (about Rs 4,200 crore) through Qualified Institutional Placement (QIP) to pursue its growth plans. The Adani Group flagship company completed the QIP with face value of Rs 1 each, aggregating to Rs 4,200 crore. A total of 1,41,79,608 equity shares were allotted through QIP at an issue price of Rs 2,962 per equity share. The QIP saw huge demand, receiving bids of about 4.2 times the deal size from a diverse group of investors including global long-only investors, leading Indian mutual funds and insurance companies. The company said in a statement that the proceeds from the QIP will be used for capital expenditure, loan repayments and general corporate purposes. The transaction was initiated on October 9, with a deal size of approximately $500 million, and closed on October 15.

SBI Capital Markets, Jefferies India and ICICI Securities were the book running lead managers to the issue. Cantor Fitzgerald & Company acted as advisor in connection with the issue.

According to the company, the successful QIP underlines its position as India's largest listed incubator of scalable and large businesses in core infrastructure that meets the country's needs. Adani Enterprises' current incubation portfolio includes transportation and logistics. The sector includes airports and roads, new energy ecosystems (including solar and wind manufacturing) and data centers in the energy and utility sector.

In the April-June quarter, Adani Enterprises Ltd reported a strong net profit of Rs 1,458 crore, an impressive growth of 116 per cent from the same quarter last fiscal. The Adani Group flagship company earned Rs 26,067 crore in total income, up 13 per cent from Rs 23,016 crore in Q1FY24. Consolidated EBITDA grew 48 per cent to Rs 4,300 crore. The emerging core infra businesses of Adani New Industries Limited (ANIL) ecosystem, airports and roads, continue to make significant progress in their operational performance.