Adani Energy Solutions Raises Rs 8,373 Crore From QIP Route

Gujarat-based Adani Energy Solutions Limited (AESL), recently completed its Rs 8,373 crores (USD 1 billion) Qualified Institutional Placement (QIP). This QIP marks AESL’s first equity raise in the capital market since its demerger and listing from Adani Enterprises Limited (AEL) in July 2015.

Adani Energy has a base deal size of Rs. 5,861 crore (USD 700 million) and includes a green shoe option to size up to Rs. 8,373 crore (USD 1 billion). The QIP saw an increase in demand, receiving bids of approximately six times (6x) of the base deal size from a diverse group of investors, including utility-focused US investors entering India for the first time, sovereign wealth funds, major Indian mutual funds, and insurance companies. This strong interest enabled AESL to fully exercise the green shoe option, raising the total issue size to USD 1 billion.

AESL has identified and focused on key areas such as:

• Renewable Power Transmission: Investments in projects like Khavda in Gujarat and in Rajasthan for bulk renewable power evacuation.
• Renewable Power Penetration: Distributing 37% renewable power in Mumbai and growing this further.
• Energy Efficiency: Leading India’s smart meter installation program and partnering with Industrial and Commercial establishments for efficiency improvement programs.
• Cooling Solutions: Investing in energy intensity reduction in line with India’s commitments, through innovative Cooling as a Solution (CaaS) offerings.
• Dispatchable Renewable Energy: Providing reliable renewable energy solutions to commercial and industrial customers, as a retail energy partner of choice.

The company plans to use the proceeds from the QIP to invest in transmission assets for building the bulk evacuation corridors for renewable power, expanding its smart metering business.

“India’s robust investment cycle and rising power demand are positive indicators for the power sector. The strong interest from institutional investors reflects their commitment to and belief in India’s energy transition, in which AESL plays a pivotal role. AESL is revolutionizing the delivery of electricity to end consumers in a reliable, affordable, and sustainable manner, contributing significantly to India’s energy transition. The overwhelming response to our QIP reflects the strong confidence that investors have in our robust business model, execution capabilities, and effective capital allocation strategy, driving strong growth and exceptional shareholder value,” said  Kandarp Patel, Chief Executive Officer of AESL.