Adani Enterprises Raises Share Sale Size to $1.6 Bn after Heavy Demand

Adani Enterprises has raised the size of its Qualified Institutional Placement to ₹15,000 crore ($1.6 billion), up from an initial ₹10,000 crore, after strong demand from both global and domestic investors, according to a Bloomberg report citing deal terms. The upsizing came within a day of the sale's launch, reflecting the pace at which the offering was subscribed by investors.

The offering, from billionaire Gautam Adani's flagship company, was subscribed 1.5 times on Friday. Participating investors included major global asset managers such as The Capital Group, Goldman Sachs Group, Vanguard Group and BlackRock, alongside domestic mutual funds including SBI Funds Management, ICICI Prudential Asset Management and HDFC Asset Management, the report said.

The order book was fully pre-filled before launch, allowing the deal to close within 48 hours of its launch, including the period covering investor roadshows. Domestic institutional investors accounted for 65% of the subscription, while global investors made up the remaining 35%, the report added.

Deal Structure and Pricing

The ports-to-power conglomerate launched the share sale on Thursday, offering up to 34.7 million shares to institutional investors at an indicative price of ₹2,883 apiece, Bloomberg reported, citing deal terms. This price represented a discount of about 9% to the stock's Thursday closing price of ₹3,177.50. At the indicative price, the base offer size of 34.7 million shares corresponded to around ₹10,000 crore, the figure that was subsequently increased to ₹15,000 crore.

The offering, structured as a sale to qualified institutional buyers, included an option to increase its size, which was exercised following the strong demand. Jefferies Financial Group, SBI Capital Markets, ICICI Securities and IIFL Capital Services are the book-running lead managers handling the transaction on behalf of the company.

Adani Enterprises plans to use the proceeds to fund capital expenditure across its businesses, including construction of a polyvinyl chloride plant and payment of concession fees for a road project. Part of the funds may also be used to reduce debt at its solar, airport and copper businesses.

This is not the company's first major capital raise this year. In December, Adani Enterprises had raised $2.6 billion through a rights issue of partly paid equity shares, issuing 138.5 million shares at ₹1,800 each. The company's stock has gained 42% so far this year.