Adani Energy Solutions (AESL) has raised ₹83.73 billion (~$1 billion) through a qualified institutional placement (QIP).

The proceeds from the QIP will be utilized for investment in transmission assets, such as building bulk evacuation corridors for renewable power, the smart metering business, debt repayment, and general corporate purposes.

The QIP represents AESL’s first equity raise in the capital market since its demerger and listing from Adani Enterprises (AEL) in July 2015.

The transaction was launched on July 30, 2024, with a base deal size of ₹58.61 billion ($700 million) and included a greenshoe option to size up to ₹83.73 billion ($1 billion).

The QIP saw positive demand, receiving bids approximately 6x the base deal size from diverse investors, including utility-focused U.S. investors entering India for the first time, sovereign wealth funds, major Indian mutual funds, and insurance companies.

The strong interest enabled AESL to fully exercise the green shoe option, raising the total issue size to $1 billion.

Kandarp Patel, Chief Executive Officer of AESL, said, “India’s robust investment cycle and rising power demand are positive indicators for the power sector. The strong interest from institutional investors reflects their commitment to and belief in India’s energy transition, in which AESL plays a pivotal role.

AESL has emerged as a pivotal player in India’s energy transition solutions, focusing on several key areas:

• Renewable Power Transmission: Investments in projects like Khavda in Gujarat and in Rajasthan for bulk renewable power evacuation.
• Renewable Power Penetration: Distributing 37% renewable power in Mumbai and growing this further.
• Energy Efficiency: Leading India’s smart meter installation program and partnering with industrial and commercial establishments for efficiency improvement programs.
• Dispatchable Renewable Energy: Providing reliable renewable energy solutions to commercial and industrial customers.

In May, Adani Green Energy secured a $400 million green loan for its under-construction 750 MW solar power projects in Rajasthan and Gujarat from a consortium of five international banks. The consortium will provide financing for projects that will come online by November this year.

Adani Green was also the top utility-scale solar project developer in the calendar year 2023, accounting for 28.9% of the yearly capacity additions, according to Mercom’s India Solar Market Leaderboard 2024.