Citing people privy to the development, the Bloomberg report further said that Adani Energy is looking to bring in more institutional investors, including some from the US, through the share sale. Such an expansion of investor base is also an attempt to draw more research analysts to cover the firm.
AESL operates over 21,100 circuit kilometers (ckm) of transmission lines and has a target of ramping up to 30,000 ckm by 2030 through both organic and inorganic growth opportunities. Despite challenges, this QIP represents a powerful vote of investor confidence in the Adani Group and its recovery from the Hindenburg attack.
In May, Adani Energy Solutions Ltd. received board approval to raise up to ₹12,500 crore through various modes. This capital infusion is part of their strategic growth plans and recovery efforts following the Hindenburg attack.
Adani Group's return to public fundraising represents a significant milestone in their recovery journey. It reflects investor confidence and resilience following the Hindenburg attack.
The Hindenburg attack refers to a critical report published by the short-selling firm Hindenburg Research in June 2021. The report targeted the Adani Group, specifically its power transmission companies, including Adani Transmission and Adani Energy Solutions.
The report significantly impacted the Adani Group's market value, erasing up to $153 billion from the Indian conglomerate's valuation. However, it's interesting to note that Hindenburg's financial gains from this were relatively small, totaling just over $4 million. Since then, shares and bonds of Adani Group companies have swung wildly but have gradually recovered ground. As of now, the group's market value stands at approximately $205 billion, which is about $30 billion short of its pre-Hindenburg level.
The recent share sale by AESL, via QIP, represents the Group's efforts to recover from the impact of the Hindenburg attack.
However, it is to be noted that details of the fundraising, including size, could still change as the fundraise efforts are ongoing.
Advertisements