Adani Enterprises launches QIP to raise at floor price Rs 3117.47 per share
Mumbai: Adani Enterprises Ltd, the flagship firm of billionaire Gautam Adani's conglomerate, launched its Qualified Institutional Placement (QIP) on Wednesday, setting the floor price for the issue at Rs 3,117.4750 per equity share, reflecting a 1.2% discount to the day’s closing price, reported Moneycontrol.
In May, the company had approved plans to raise up to Rs 166 billion ($1.98 billion).
During an October 9 meeting, the company’s fund-raising committee approved the preliminary placement document and confirmed that it could offer up to a 5% discount on the calculated floor price.
SBI Capital Markets Limited, Jefferies India Private Limited, and ICICI Securities Limited were appointed as the book-running lead managers for the issue, while Cantor Fitzgerald & Co. was brought on board as an advisor.
In a regulatory filing, Adani Enterprises clarified that the equity shares involved in this issue would not be registered under the U.S. Securities Act of 1933 and would not be offered or sold in the U.S., barring exceptions as outlined by the law. No public offering in the United States is planned.
The QIP method allows listed companies to raise capital from institutional investors without the need for extensive regulatory documentation.
By attracting funds from banks and private equity, Adani Enterprises aims to expand its shareholder base—addressing one of the key criticisms of the group—while also bolstering its global standing.
The proceeds from the QIP will be allocated towards capital expenditure and repaying part of the company’s and its subsidiaries' debt.
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