Adani Enterprises increases QIP to Rs 15,000 crore on strong investor interest; Share price tumbles over 2% – Markets

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Adani

The strong response enabled Adani Enterprises to revise the fundraising size upwar. (Image: ET Now Digital)

Adani Enterprises Ltd.’s share price came under pressure on Friday, falling 2.2 per cent to hit an intraday low of Rs 3,177.50. The stock came under pressure despite the company increasing the size of its qualified institutional placement to Rs 15,000 crore after receiving investor bids worth nearly Rs 38,000 crore, reflecting robust demand from both global institutional investors and domestic fund houses.

The fundraising exercise, which initially targeted Rs 10,000 crore, witnessed subscriptions far exceeding the original issue size, prompting the company to raise the amount being mobilised. The issue emerged as one of the largest QIPs in the country in recent years.

The offering attracted participation from several leading international investment firms, including Capital Group, Goldman Sachs, BlackRock, Blackstone and Nomura. The strong response from overseas investors was complemented by broad-based interest from India’s mutual fund industry.

The share sale by the flagship company of the Adani Group received subscriptions well above the base issue size, demonstrating continued investor confidence in the company despite the large fundraising target.

People familiar with the transaction said the offering saw participation from a diverse mix of global asset managers and domestic institutional investors.

The strong response enabled Adani Enterprises to revise the fundraising size upward to Rs 15,000 crore, making it one of the largest equity capital market transactions undertaken by the company.

The company plans to use the proceeds for capital expenditure to accelerate the growth of its incubation businesses, repayment of loans, and general corporate purposes, including funding inorganic growth opportunities through acquisitions or investments.

Notably, a significant portion of the proceeds will be deployed towards setting up a PVC manufacturing plant, marking a strategic expansion into a high-growth, import-dependent segment.

(Disclaimer: The above article is meant for informational purposes only and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)



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