Adani Enterprises, the flagship company of the Adani Group, successfully upsized its Qualified Institutional Placement (QIP) to ₹15,000 crore (approximately $1.6 billion) from an initial target of ₹10,000 crore. This increase was driven by significant investor demand, with the share sale attracting bids totaling approximately ₹38,000 crore ($4 billion), representing 3.8 times the base offer. The order book was fully pre-filled before the launch, enabling the deal to close within 48 hours, including investor roadshows.
The offering involved approximately 34.7 million shares at an indicative price of ₹2,883 per share, a discount of about 9.27% to the stock's closing price of ₹3,177.50 on the day prior. Domestic institutional investors accounted for 65% of the subscription, while global investors made up the remaining 35%. Notable investors included Capital Group, BlackRock, Goldman Sachs Group, Vanguard Group, HDFC Mutual Fund, ICICI Mutual Fund, Kotak Mutual Fund, SBI Mutual Fund, and Tata Mutual Fund.
The proceeds from the QIP will be allocated towards capital expenditures for various businesses, including the construction of a polyvinyl chloride (PVC) plant and concession fees for a road project. A portion of the funds may also be used to reduce debt in the company's solar, airport, and copper businesses, and to accelerate growth in its incubation ventures. This marks the second major capital raise for Adani Enterprises this year, following a ₹25,000 crore rights issue in December.
This robust investor interest comes despite recent scrutiny, such as a US federal judge pausing the dismissal of criminal charges against Gautam Adani. However, the strong institutional participation underlines investor confidence in the Adani Group's operational businesses, capital allocation strategies, and growth prospects. Jefferies Financial Group, SBI Capital Markets, ICICI Securities, and IIFL Capital Services served as the book-running lead managers for the transaction.
