INDIA’S Adani Energy Solutions plans to raise up to US$1 billion through an equity market share sale, said two sources with direct knowledge of the matter, its first such deal since a scathing report from short-seller Hindenburg Research last year.
The sale of existing shares will be Adani Group’s first fundraising from equity markets after a US$2.5 billion share sale was scrapped in February last year following US-based Hindenburg’s accusations of improper use of offshore tax havens and stock manipulation. Adani has always denied wrongdoing.
A statement from Adani Energy, which is led by billionaire Gautam Adani, said the floor price for the issue has been set at 1,027.11 Indian rupees, at a discount to Tuesday’s (Jul 30) close of 1,124.9 rupees.
The initial share sale will be for US$700 million, with a so-called greenshoe option for a further US$300 million, the sources said.
The power transmission and distribution company announced plans earlier on Tuesday to raise funds through a Qualified Institutional Placement (QIP), a tool used by listed Indian companies to raise funds from large institutions.
It did not respond to queries from Reuters on how much in total it was aiming to raise.
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SBI Capital Markets, Jefferies India and ICICI Securities have been appointed book running lead managers for the issue and Cantor Fitzgerald as an advisor, the company said in a statement.
Over 50 investors including large domestic mutual funds will invest in the issue, one of the sources said.
Adani Energy’s shares rose about 7 per cent on Tuesday. The stock, however, is roughly 60 per cent lower than its levels prior to the Hindenburg Research’s accusations against the group.
On Monday, Reuters reported that Adani Energy will likely launch a US$600 million share issue this week and that at least three foreign investors who have not previously invested in India are set to invest in the offering.
The company said it would file the preliminary placement document with exchanges on Tuesday. REUTERS
