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Adani Enterprises Ltd, the flagship firm of billionaire Gautam Adani's conglomerate, has launched its Qualified Institutional Placement (QIP) with a floor price of Rs 3,117.4750 per equity share. This represents a 1.2% discount to Wednesday's closing price. The company had earlier approved the raising of up to 166 billion rupees ($1.98 billion) in May.
The QIP committee of Adani Enterprises, at a meeting held on October 9, finalized and adopted the preliminary placement document. The company may offer a discount of up to 5% on the floor price for the issue. SBI Capital Markets Limited, Jefferies India Private Limited, and ICICI Securities Limited have been appointed as the book-running lead managers for the issue, while Cantor Fitzgerald & Co. has been designated as an advisor.
Adani Enterprises, in an exchange filing, clarified that the equity shares offered in the QIP have not been and will not be registered under the U.S. Securities Act of 1933, and will not be offered or sold within the United States except under specific exemptions. The company does not plan a public offering of securities in the United States.
A QIP is a mechanism employed by listed companies to raise capital without needing to submit extensive paperwork to market regulators. The funds raised from this QIP are intended for capital expenditure and debt repayment for Adani Enterprises and its subsidiaries.
This fundraising effort will broaden the shareholder base of Adani Enterprises, addressing one of the criticisms levied against the Adani Group. It will also enhance the group's global presence. This initiative signifies the Adani Group's commitment to expanding its operations and financial strength.
Source: Adani Enterprises launches QIP at floor price of Rs 3117.47 per share