In the largest qualified institutional placement this year, Adani Enterprises’ share sale today received huge response, almost twice as much as the original fund raising plan.
The response has enabled it to raise as much as Rs 4,000 crore ($850 million), while the plan was to raise $600 million (Rs 2,800 crore). The QIP, which opened yesterday, has received offers amounting to as much as Rs 5,500 crore ($1.2 billion). The issue closed today and the formalities will be completed tomorrow.
More than 40 accounts have participated in the deal, and 65 per cent of the demand came from long-only investors such as pension funds. Around 57 per cent of the demand came from the US, 14 per cent from Europe, 25 per cent from Asia and the rest from India, merchant banking sources say.
"This is the largest primary capital raising out of India in this calendar year and the best US response in an Indian deal in more than three years," said a banker associated with the deal. In April, GMR Infra raised $315 million (Rs 1,400 crore) via a QIP and YES Bank had a QIP issue of $225 million (Rs 1,000 crore) in January.
The share sale was managed by an eight-bank syndicate, with Bank of America Merrill Lynch the lead book runner. The other bankers are Citigroup, Morgan Stanley, IDFC Capital, Enam Securities, ICICI Securities, Kotak Mahindra Capital and UBS.
The Gautam Adani-led company has increased its presence across sectors such as coal mining, power generation, oil and gas exploration, gas distribution and ship fuelling.