Ahmedabad, July 3 (IANS). Adani Group has been successful in attracting global institutional investors and large mutual funds from India and this reflects a clear change in investor sentiment towards the Group.
Adani Group’s main company Adani Enterprises Limited (AIL) has been successful in raising about Rs 40,000 crore from investors through fresh equity in the last one year. At the same time, many big global and domestic investors have increased stake in many listed companies of the group.
Adani Enterprises Limited (AEL) this week increased the size of its Qualified Institutional Placement (QIP) to Rs 15,000 crore. The company received bids worth about Rs 38,000 crore for this, which is 3.8 times the base issue size. The fund raising comes less than a year after the company’s Rs 25,000 crore rights issue, taking the total equity capital raised in the last one year to about Rs 40,000 crore.
Several large institutional investors participated in the latest fund raising process, including Capital Group, Goldman Sachs, BlackRock, Blackstone and Nomura. A large number of investors also participated at the domestic level. These included HDFC Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, SBI Mutual Fund and Tata Mutual Fund.
People associated with this deal said that the order book was completely filled even before the issue formally opened. Bankers said investors were competing to get shares. The company had earlier launched the QIP with a base size of Rs 10,000 crore, but in view of the tremendous demand, it was increased to Rs 15,000 crore.
This process of raising funds is the latest sign of a major change in the thinking of investors towards Adani Group. There was a time when many institutional investors did not like Adani Group shares, but now these shares have become one of the most sought-after stocks among global funds and domestic asset managers.
Over the past year, large institutional investors have participated in fund raising and secondary transactions in Adani Enterprises as well as companies such as Adani Power, Adani Ports & SEZ, Adani Energy Solutions and Adani Green Energy. This list of investors has consistently included some of the world’s largest asset managers and almost all major domestic mutual funds, reflecting the growing confidence in the Group’s long-term investment pipeline.
This new demand comes after a US federal judge has blocked the formal dropping of criminal charges against Adani Group Chairman Gautam Adani and directed the Department of Justice to justify its decision to withdraw the case. The strong participation from institutional investors reflects the investors’ focus on the Group’s operating business, capital allocation and growth prospects.
The group’s main company Adani Enterprises is expanding its business in sectors like airports, AI and data centres, solar and wind equipment manufacturing, roads, PVC, metals and mining. A day before QIP, the company announced an investment of $11.5 billion with IHC to set up India’s largest aluminum manufacturing project, the largest foreign direct investment (FDI) ever announced in India’s metals and mining sector.
–IANS
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