Adani Group secures $1 billion in share sale amidst post-Hindenburg recovery

The Adani Group, led by billionaire Gautam Adani, has successfully raised $1 billion through a Qualified Institutional Placement (QIP) of Adani Energy Solutions Ltd. This marks the first public equity raise for the conglomerate since the Hindenburg report, which previously led to a dramatic decline in shareholder value.

The QIP, which commenced on Tuesday, saw a threefold oversubscription, with demand reaching approximately ₹26,000 crore, making it the largest transaction in India's energy sector to date. The shares were issued at ₹1,135 each, a 14% discount compared to the issue price of ₹976.

Notable investors in the QIP included GQG Partners, ADIA, and several prominent U.S. institutions, alongside domestic players such as Bandhan Mutual Fund and Nomura. The successful fundraising is viewed as a strong endorsement of investor confidence in the Adani Group.

This QIP follows a previous failed attempt to raise ₹20,000 crore in February last year, which was aborted in the wake of the Hindenburg report's allegations of accounting fraud and stock manipulation. Despite these claims, which the group has consistently denied, Adani's listed companies experienced a significant loss in market value.

The Adani Group has since made substantial recoveries. In addition to the QIP, Adani Enterprises Ltd is planning to launch its first-ever public bond sale, aiming to raise up to ₹600 crore. The company has appointed Trust Investment Advisors, AK Capital Services, and Nuvama Wealth Management as lead managers for the bond issuance.

Earlier this year, Adani also tapped the dollar bond market, securing bids of about $2.9 billion for its solar energy unit, Adani Green Energy Ltd, and its affiliated firms, marking a return to the international debt market since the Hindenburg report.

Adani Energy Solutions Ltd has confirmed the opening of the QIP and set the floor price for the issue.