This marks the first time these three funds have invested in Indian equities. The $1-billion QIP, launched after trading ended Tuesday and closed before market hours on Wednesday, was oversubscribed six times, garnering a demand of more than ₹50,000 crore, sources added.
Stanley Druckenmiller is known for his significant role in 1992 when he and George Soros broke the Bank of England by shorting the British pound, leading to its crash and earning over a billion dollars. His fund Duquesne Capital Management gave an average annual return of 30% from 1986 to 2010. Druckenmiller closed his fund in 2010 and currently runs the Duquesne Family Office, which has about $3.4 billion in assets.
Email queries sent to Adani Energy, Driehaus, Duquesne, and Jennison remained unanswered.
More than 125 institutional investors participated in the fundraising of Adani Energy, said the person cited above. Other prominent investors in the QIP include Blackrock, Abu Dhabi Investment Authority (ADIA), Jupiter Asset Management, Nomura, Eastspring Investments, GQG Partners, and Qatar Investment Authority. Domestic mutual funds such as SBI, HDFC, Axis, Tata, LIC, WhiteOak, and 360 One WAM also participated in the QIP, according to sources.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 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.
Adani Energy’s $1-billion QIP
Shares of Adani Energy gained a percent on Wednesday to close at ₹1,138.
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.
The report alleged accounting fraud and stock price manipulation within the group, triggering a stock market rout that erased about $150 billion (₹12.5 lakh crore) in market value at its lowest point. The Adani Group has steadfastly denied all the allegations, and the stocks have since recouped the losses.
As one of the leading private sector power transmission and distribution (T&D) companies in India, Adani Energy commands over a 35% market share. The company also has power distribution licenses for Mumbai and Mundra SEZ.