Adani Group's power transmission and distribution arm raised $1bn in an equity sale, the first since the Indian conglomerate canned a share placement after being hit by damaging corporate fraud allegations.
Demand for Adani Energy Solutions' Rs 83.7 bn qualified institutional placement was six times above the base deal size, the company said. Buyers included INQ, a subsidiary of Qatar's sovereign wealth fund, Citigroup, Nomura and Indian mutual fund SBI.
Adani Energy Solutions, which operates and is constructing more than 21,000 circular km of power lines, said it would use the share sale proceeds in several ways including to pay down debt and invest in its smart metering business.
“The strong interest from institutional investors reflects their commitment to and belief in India's energy transition, in which Adani Energy Solutions [Limited] plays a pivotal role,” said Kandarp Patel, AESL chief executive. “India's robust investment cycle and rising power demand are positive indicators for the power sector.”
The share sale is part of an effort by Adani Group founder Gautam Adani to move on from a range of scandals that dented his infrastructure empire, which spans ports, power and cement. Adani Group is expanding rapidly across its mainstay businesses and has increasingly diversified into new sectors, from data centres, media and consumer finance.
Adani, who has openly tied his business interests to Modi's development agenda that aims to build out India's once decrepit national infrastructure, spent much of the past year deleveraging its debt-laden companies following Hindenburg's broadside. The group, which has extensive interests in coal, is also at the forefront of India's renewable energy drive, which aims to more than double green generation in a country by 2030.
