INQ Holdings, SBI funds, Citigroup largest consumers in Adani Vitality’s $1 billion QIP
The Rs 8,373.10 crore (USD 1 billion) certified institutional placement (QIP) of Adani Vitality Options Ltd (AESL), which closed final week, noticed over 120 buyers search shares within the agency that’s into energy transmission, distribution and sensible metering enterprise.
Billionaire Stanley Druckenmiller’s household office-led funding corporations have been among the many firms that sought shares of AESL within the QIP.
AESL within the submitting stated its board has accredited allocation of over 8.57 crore shares to eligible certified institutional consumers on the difficulty worth of Rs 976 per share, reflecting a reduction of Rs 51.11 (4.98 per cent) to the ground worth of Rs 1,027.
Giving particulars of allottees who bought greater than 5 per cent of shares, it stated INQ Holdings LLC, a wholly-owned subsidiary of QIA, cornered 15 per cent of the shares offered. Two Mauritius funds of Citigroup purchased 8.88 per cent of the shares offered whereas 4 SBI funds – SBI Infrastructure Fund, SBI Massive & Midcap Fund, SBI Long run Benefit Fund Collection IV and SBI Magnum Youngsters’s Profit Fund – collectively took residence 7.93 per cent of the shares. Nomura Singapore Ltd ODI cornered 7.5 per cent of the shares, the submitting confirmed. INQ had in August final yr acquired practically 2.7 per cent in Adani Inexperienced Vitality Ltd – the renewable vitality agency of the conglomerate run by billionaire Gautam Adani. In 2020, it had acquired a stake in Adani Electrical energy Mumbai Ltd, a subsidiary of AESL.
The AESL QIP final week was oversubscribed six instances and fetched demand of over Rs 50,000 crore in opposition to a problem measurement of USD 1 billion.
Duquesne Household Workplace and two different US-based long-only funds – Driehaus Capital Administration and Jennison Associates – purchased shares however AESL didn’t disclose the precise variety of shares they purchased since these have been lower than 5 per cent of the problem measurement, sources stated.
The QIP difficulty marked the debut of extremely prestigious long-only buyers Duquesne Household Workplace, Driehaus Capital Administration and Jennison Associates that are identified for his or her sturdy efficiency.
These buyers are identified for investing solely in firms with excessive governance and are identified for staying invested for many years.
The QIP was the primary public fairness elevate by the conglomerate since a damning Hindenburg report final yr wiped away billions in shareholder worth.
The demand generated made the AESL QIP the most important within the vitality area.
Duquesne was based by billionaire Stanley Druckenmiller, who together with George Soros in 1992 broke the Financial institution of England by shorting the British pound, resulting in its crash and earnings over a billion {dollars}.
Adani Group has a historical past of introducing a number of long-only buyers available in the market. Up to now years, it has introduced massive buyers together with GQG Companions and Worldwide Holding Firm (IHC) apart from QIA.
Different main world names that participated within the QIP embrace Blackrock, Jupiter Asset Administration, and Eastspring.
Home mutual funds which have participated included HDFC Mutual Fund, Axis Mutual Fund, Bandhan Mutual Fund, LIC, WhiteOak, 360One amongst others.
Insurance coverage firms together with SBI Insurance coverage, SBI Pension and ASK Asset Administration have additionally participated, in accordance with sources.
QIP is an instrument utilized by listed firms to lift funds from massive establishments.
The fundraise is the primary after Adani group’s flagship agency scrapped a Rs 20,000 crore difficulty in February final yr, following the Hindenburg report alleging accounting fraud and inventory manipulation.
Although the group vehemently and repeatedly denied all allegations, listed firms of the conglomerate at one level noticed over USD 150 billion of their market worth being worn out.
Whereas the group has largely recovered, a profitable QIP is being seen as a robust vote of investor confidence within the tycoon.
Individually, Adani Enterprises Ltd, the flagship agency of the group, is seeking to revive its first-ever public sale of bonds. It plans to lift as a lot as Rs 600 crore.
The corporate has employed Belief Funding Advisors, AK Capital Companies and Nuvama Wealth Administration as lead managers for the issuances.
The group had tapped the greenback bond market in March this yr – the primary time for the reason that Hindenburg report – when its photo voltaic vitality unit Adani Inexperienced Vitality Ltd and related corporations bought bids of about $2.9 billion.
