Adani Enterprises Ltd. (AEL), led by Gautam Adani, has successfully raised Rs 4,200 crore through a Qualified Institutional Placement (QIP). The company allocated 1.41 crore equity shares to Qualified Institutional Buyers (QIBs) at an issue price of Rs 2,962 per share. This transaction was initiated on October 9, 2024, after the market closed and concluded on October 15, 2024. According to reports, the deal size amounted to approximately Rs 4,200 crore ($500 million).
The QIP saw high demand, receiving bids around 4.2 times the deal size from various investor groups. This included global long-term investors, leading Indian mutual funds, and insurance companies.
A QIP is a method for listed companies to raise capital without going through extensive regulatory paperwork.
Last year, Adani Enterprises planned to raise Rs 20,000 crore through the country’s largest Follow-On Public Offer (FPO), with shares priced between Rs 3,112 and Rs 3,276 each. However, just before the FPO opened, US-based Hindenburg Research released a report accusing the Adani Group of stock manipulation. This led to a sharp drop in the company’s share prices. Despite the FPO being fully subscribed, the company cancelled the sale and refunded the money.
On Thursday, Adani Enterprises’ stock fell by 2.38%, closing at Rs 3,012.20. During trading, it hit a low of Rs 2,993.40. The stock had reached its 52-week high of Rs 3,743 in June 2024.
