The issue comprises a base deal of up to ₹5,861 crore ($700 million) and a greenshoe option to upsize by up to an additional ₹2,512 crore ($300 million).
The company has set an indicative issue price of ₹976 per share, a 13.24% discount from Tuesday’s closing price.
Some of the investors participating in the placement include GQG Partners, Qatar Investment Authority, Abu Dhabi Investment Authority (ADIA), White Oak, Nomura, 360 ONE WAM, and domestic mutual funds such as Bandhan and Axis, according to sources.
The company is issuing 60.1 million equity shares as the base issue with an option to upsize to 25.7 million shares. According to the term sheet, the dilution at the base deal is 5.38% of the pre-issue outstanding equity capital, and at the upsized deal, it is 2.31% at the indicative issue price.
The company intends to use the proceeds to fund capital expenditure requirements of some of its subsidiaries for setting up transmission systems, purchasing and installing smart meters, repaying certain outstanding borrowings, and for general corporate purposes.
Shares of Adani Energy rallied 7% on Tuesday to close at ₹1,125.
On Tuesday, ET reported that Adani Energy Solutions is likely to launch a QIP this week to raise up to $1 billion.
In an exchange filing, the company stated that the issue price would be determined in consultation with the bankers.
SBI Capital Markets, Jefferies India Private, and ICICI Securities have been appointed as the book-running lead managers for the issue, it added.
In May, the board of Adani Group’s power transmission unit approved raising ₹12,500 crore through equity to fund expansion.
This will be the first equity fundraising by an Adani Group compa ny since Adani Enterprises called off its ₹20,000 crore follow-on public offer (FPO) in February last year after raising the amount. The company returned the money raised in the country’s largest FPO following a sharp correction in Adani Group stock prices after an adverse report by US short-seller Hindenburg.
As one of the leading private sector power transmission and distribution (T&D) companies in India, Adani Energy commands over a 35% market share.