Adani Enterprises Raises Rs 4,200 Crores Through Equity Share Sale
Adani Enterprises Limited (AEL), based in Ahmedabad, Gujarat, has successfully completed a significant financial transaction. On October 17, AEL announced the completion of a qualified institutional placement (QIP) of equity shares, raising approximately Rs 4,200 crores (USD 500 million).
The QIP involved the allocation of 1,41,79,608 equity shares at an issue price of Rs 2,962 per share. The transaction was initiated after market hours on October 9, 2024, and concluded on October 15, 2024. The offering received an enthusiastic response, with bids amounting to 4.2 times the deal size from a diverse group of investors, including global long-only investors, major Indian mutual funds, and insurance companies.
This successful transaction highlights AEL’s status as India’s largest listed incubator of scalable businesses in core infrastructure sectors. AEL’s current projects include airports and roads in the transport and logistics sector, as well as new energy initiatives like solar and wind manufacturing, and data centers in the energy and utility sector. Additionally, AEL is involved in businesses such as copper, PVC, defense, and specialized manufacturing, supporting India’s Atmanirbhar Bharat vision.
The funds raised will be used for capital expenditure, debt repayment, and general corporate purposes. The book running lead managers for the issue were SBI Capital Markets Limited, Jefferies India Private Limited, and ICICI Securities Limited. Cantor Fitzgerald & Co. served as an advisor, while Cyril Amarchand Mangaldas, Trilegal, and Latham & Watkins LLP provided legal counsel.
Doubts Revealed
Adani Enterprises -: Adani Enterprises Limited is a big company in India that works in different areas like energy and infrastructure. It’s part of the Adani Group, which is one of the largest business groups in India.
Rs 4,200 Crores -: Rs 4,200 Crores is a large amount of money. In Indian currency, a crore is equal to ten million, so 4,200 crores is 42 billion rupees.
Equity Share Sale -: An equity share sale is when a company sells parts of itself, called shares, to raise money. People who buy these shares become part-owners of the company.
Qualified Institutional Placement (QIP) -: A Qualified Institutional Placement is a way for companies to raise money by selling shares to big investors like banks or mutual funds, instead of the general public.
Capital Expenditure -: Capital expenditure is money that a company spends to buy, maintain, or improve its fixed assets, like buildings, vehicles, or equipment.
Debt Repayment -: Debt repayment is when a company pays back the money it has borrowed from banks or other lenders.
Atmanirbhar Bharat -: Atmanirbhar Bharat means ‘Self-Reliant India.’ It’s a vision by the Indian government to make India more self-sufficient and less dependent on other countries.
SBI Capital -: SBI Capital is a part of the State Bank of India, which is the largest bank in India. It helps companies with financial services like raising money.
Jefferies -: Jefferies is a global investment bank that helps companies with financial services, like raising money and giving advice on business deals.
ICICI Securities -: ICICI Securities is a part of ICICI Bank, one of the big banks in India. It provides financial services like helping companies raise money and manage investments.