SBI and Citigroup biggest investors in Adani Energy's $1B QIP
Adani Energy Solutions Ltd (AESL), an arm of the Adani Group, successfully raised $1 billion through a Qualified Institutional Placement (QIP) last week. The QIP was led by INQ Holdings LLC (a unit of Qatar Investment Authority), SBI Mutual Fund, and foreign investment funds Nomura and Citigroup. According to a stock exchange filing by AESL, over 120 investors expressed interest in acquiring shares in the firm that specializes in power transmission, distribution, and smart metering business.
AESL approves allocation of over 8.57 crore stocks
The board of AESL has approved the allocation of over 8.57 crore stocks to qualified institutional buyers at an issue price of ₹976 per share. This price represents a discount of ₹51.11 (4.98%) to the floor price of ₹1,027. Among those who received more than 5% of stocks, INQ Holdings LLC secured 15% while two Mauritius funds from Citigroup purchased 8.88%.
SBI funds and Nomura secure significant shares
Four SBI funds - SBI Infrastructure Fund, SBI Large & Midcap Fund, SBI Long term Advantage Fund Series IV, and SBI Magnum Children's Benefit Fund - collectively acquired 7.93% of the shares. Additionally, Nomura Singapore Ltd ODI secured 7.5% of the stocks in this QIP led by AESL. The QIP was oversubscribed six times, and generated demand exceeding ₹50,000 crore against an issue size of $1 billion.
Other participants in AESL's QIP
Duquesne Family Office and two other US-based long-only funds - Driehaus Capital Management and Jennison Associates - also participated in the QIP. However, AESL did not disclose the exact number of shares they purchased, as these were less than 5% of the issue size. Other major global names that participated include Jupiter Asset Management, Blackrock, and Eastspring. Domestic mutual funds like HDFC Mutual Fund, Axis Mutual Fund, Bandhan Mutual Fund, LIC, WhiteOak, and 360One also took part.
