Adani Energy Solutions shares rally 8% as Rs 6,000 crore QIP launch likely today

Adani Energy Solutions is set to launch a qualified institutional placement (QIP) later today, that is Tuesday, July 30, reported MoneyControl citing sources. The demand for the QIP has already crossed three times, said the report based on the information by the sources.
 

Other than Rajiv Jain's GQG Partners, Abu Dhabi Investment Authority and Qatar Fund, a few more US-based funds may participate in the QIP. Eastspring, White Oak, Nomura, Bandhan Mutual Fund, Axis Mutual Fund and IIFL may also participate in the QIP, the sources said.
 

Floor price for the QIP is likely to be Rs 1,025 per share and maximum 5 per cent discount will be allowed on the floor price. The issue size may be increased to $1 billion in case of demand, sources add. Bankers advising Adani on the share sale are Nomura, SBI Capital Markets, and ICICI Securities.
 

Amid the news of QIP launch, shares of Adani Energy Solutions (formerly known as Adani Transmission Ltd) jumped more than 8 per cent to Rs 1,137 during the trading session on Tuesday but finally settled at Rs 1136 with its total market capitalization of more than Rs 1.25 lakh crore.

This will be the first equity fundraising by an Adani Group company since Adani Enterprises called off its Rs 20,000 crore follow-on public offer (FPO) in February last year after having raised the amount following the damning report by the US-based short seller Hindenburg Research.
 

Adani Energy Solutions had obtained the approval from its board of directors last year to raise Rs 8,500 crore through the QIP route but eventually didn't go ahead with the fundraising. The Adani Energy board renewed the approval in May to raise funds.
 

Last week, Adani Energy Solutions reported a 47 per cent YoY rise in its consolidated revenue from operations in the April-June quarter, standing at Rs 5,379 crore. However, the Adani Group firm reported a loss of Rs 823.92 crore, attributable to owners of the company, for the June quarter, thanks to an exceptional loss of Rs 1,506.02 crore.
 

Adani Energy Solutions has reported a 47 per cent yearly rise in its consolidated revenue from operations in the April-June quarter. The consolidated revenues were at Rs 5,379 crore, the company earnings data released today showed.
 

Following the earnings last week, global brokerage firm Jefferies recommended to 'buy' Adani Energy Solutions with a target price of Rs 1,365, noting that the June quarter Ebitda was 6 per cent above expectation.