UAE, Qatar Wealth Funds Back Adani Energy's $1B Share Sale
This marks Adani Group's first equity market fundraising since a report from short-seller Hindenburg Research last year.
Abu Dhabi Investment Authority (ADIA) and Qatar Investment Authority have invested in Adani Energy Solutions' share sale in India, aiming to raise up to $1 billion, two sources in the know told Reuters.[1]
This marks Adani Group's first equity market fundraising since a report from short-seller Hindenburg Research last year.
The fundraising follows the cancellation of a $2.5 billion share sale in February last year, which was halted after Hindenburg Research accused Adani Group of improper use of offshore tax havens and stock manipulation—allegations the company has denied.
More than 50 investors participated in the deal, including GQG Partners, Nomura, and India's Bandhan Mutual Fund, according to sources with direct knowledge of the transaction, who requested anonymity as the investor names are not public.
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This investment aims to support Adani Energy, which has been regaining investor confidence after the Hindenburg report triggered a sell-off that reduced the group's stock value by over $100 billion. The shares have since recovered.
Adani Energy, the group's power transmission and distribution company, raised funds through a Qualified Institutional Placement (QIP), a method used by listed Indian companies to secure funds from large institutions. The company set the floor price for the issue at $12.27, below Tuesday, July 30th's closing price of $13.43.
The share sale was set for $700 million, with an option to increase by an additional $300 million, sources said.