The magic of Gautam Adani and his companies is making waves on the stock market. The special thing is that Adani Enterprises Limited has increased the size of its Qualified Institutional Investment (QIP) from Rs 10,000 crore to Rs 15,000 crore. According to people associated with the matter, this decision has been taken after receiving bids worth about Rs 38,000 crore for the share sale. He told that this issue, which started on Thursday, received subscription of about 3.8 times compared to the original issue size. Mainly long-term institutional investors invested in it.
These giants invested
Investors in the issue include global asset management companies and financial institutions such as Capital Group, Goldman Sachs, BlackRock, Blackstone and Nomura. Domestic investors included HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, SBI Mutual Fund and Tata Mutual Fund. This strong reaction has come at a time when investors are also keeping an eye on the ongoing legal cases in the US related to Adani Group Chairman Gautam Adani. This is Adani Enterprises’ second major equity fund raising exercise in the last one year. Earlier, the company had completed a rights issue of Rs 25,000 crore in 2025.
Where will the money be used
Adani Enterprises plans to use the money for capital expenditure in its businesses, including construction of a polyvinyl chloride plant and payment of concession fees for a road project, as well as to accelerate growth in its incubation businesses. The company may also use a portion of the funds to deleverage, repay loans in its solar, airport and copper businesses and fund inorganic growth opportunities through acquisitions or investments. According to its website, Adani Enterprises serves as the principal business incubator for the Adani Group and focuses on diverse infrastructure and emerging industrial sectors. Its main activities include airport management, solar manufacturing, road and rail infrastructure, data centres, defense and aerospace, green hydrogen ecosystem and mining services.
How many shares issued?
Adani Enterprises launched a share sale on Thursday, offering 34.7 million shares to institutional investors at an estimated price of Rs 2,883 per share. The transaction also included an option to increase the size of the offering. The estimated price was about 9.27 per cent lower than the stock’s Thursday closing price of Rs 3,177.50, and 5 per cent lower than the SEBI floor price of Rs 3,034.68. This morning this blue chip stock was trading at Rs 3150.55, down about 1 percent on BSE. Jefferies Financial Group PLC, SBI Capital Markets Ltd, ICICI Securities Ltd and IIFL Capital Services Ltd are the book-running lead managers to the share sale.
Leave a Reply