Shares of Adani Energy Solutions continued gaining streak for the second straight session on Wednesday after the Adani Group company announced raising ₹6,000 crore via qualified institutional placement (QIP) route. The shares of the power transmission arm of Adani group have rallied over 11% in two days.
On Wednesday, Adani Energy shares opened 2.2% up at ₹1,150.05 after ending 6.95% higher at ₹1,125.40 on the BSE. In the early trade, the power stock gained as much as 3.9% to ₹1,169.40, while the market capitalisation rose to ₹1.26 lakh crore.
The share price of Adani Energy touched its 52-week high of ₹1,250 on January 3, 2024, and a 52-week low of ₹686.90 on October 26, 2023. The Adani group stock has risen 67% in the last one year; 9% in six months; and over 14% in the calendar year 2024. In the past one month, the counter has gained nearly 3%.
The ₹6,000 crore QIP opened for subscription on June 30 at a floor price of ₹1,027.11 per share. The company has also proposed to offer a discount of not more than 5% on the floor price for the QIP.
“We wish to inform that the board of directors of the company, at its meeting held on May 27, 2024 and the special resolution passed at the AGM held on June 25, 2024, at its meeting held today passed resolutions for the opening of the issue today, i.e. 30th July, 2024,” Adani Energy Solutions said in a BSE filing post-market hours on Tuesday.
“…the floor price in respect of the aforesaid Issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is ₹1,027.1125 per equity share,” it added.
The QIP has received strong response from investors, with the issue over-subscribing 3x with demand of around ₹26,000 crore, sources close to the development told Fortune India. The QIP closed at ₹1,135 per share versus issue price of ₹976 apiece, a listing discount of 14%, as per the source.
Global investors such as Rajiv Jain-led GQG Partners, Abu Dhabi Investment Authority, Qatar Fund, US-based funds participated in the QIP. Among domestic mutual funds, Bandhan MF, Nomura, 360 One MF of IIFL also invested in the scheme.
SBI Capital Markets Limited, Jefferies India Private Limited and ICICI Securities Limited have been appointed as the book running lead managers for the issue. Besides, Cantor Fitzgerald & Co. has been appointed as an advisor to the issue.
Last week, Adani Energy Solutions released its June quarter earnings report, posting a consolidated net loss (attributable to the owners of the company) at ₹824 crore for the quarter ended June 30, 2024 as against ₹175 crore net profit reported in the year ago period.
The revenue from operations grew 47% to ₹5,379 crore as compared to ₹3,664 crore in the corresponding period last fiscal. The revenue growth was attributed to contribution from the newly operationalised transmission assets, line addition at under-construction projects and an increase in the units sold because of higher energy consumption in the distribution business at Mumbai and Mundra and contribution from smart metering business.
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