Adani Energy Solutions Ltd launched a Qualified Institutional Placement (QIP) on July 30, 2024, to raise ₹6,000 crore. This QIP allows the company to raise capital without submitting extensive legal paperwork to the market regulator, with only qualified institutional buyers (QIBs) being eligible to purchase the securities.
What is a QIP?
A Qualified Institutional Placement (QIP) is a method for listed companies to raise capital by selling securities to a select group of institutional investors. This process bypasses the need for detailed legal documentation typically required by market regulators.
Floor Price Announcement:
In an exchange filing, the company stated, “The ‘Relevant Date’ for the purpose of the Issue, in terms of Regulation 171(b) of the SEBI ICDR Regulations, is 30th July, 2024. Accordingly, the floor price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is ₹1,027.1125/- per Equity Share.”
Pricing and Investor Interest:
The floor price for the QIP is ₹1,027 per share. Investors can receive a maximum discount of 5% on this floor price. According to a CNBC-Awaaz report, the demand for the QIP has already exceeded three times the number of available shares. Prominent participants include GQG, ADIA, Qatar Fund, US-based funds, Axis MF, Eastspring, White Oak, Nomura, Bandhan MF, and IIFL.
Book Running Lead Managers:
SBI Capital Markets Limited, Jefferies India Private Limited, and ICICI Securities Limited have been appointed as the book running lead managers for the issue. Cantor Fitzgerald & Co. is acting as the advisor for the QIP.
Financial Performance:
Adani Energy Solutions reported a 47% increase in consolidated revenue, reaching ₹5,379 crore for the first quarter of the financial year 2024-25 compared to the same quarter the previous year.
Stock Performance:
Adani Energy Solutions shares closed at ₹1125.40 on the Bombay Stock Exchange after the trading session on Tuesday, July 30. This marks a 6.95% or 73.15-point gain compared to the previous close.
