Adani Energy Solutions Surges After Major Fundraise

Shares of Adani Energy Solutions surged over 8% following the announcement of raising USD 1 billion via a share sale, the first public equity since a damning report by Hindenburg. This significant financial milestone indicates renewed investor confidence, despite previous allegations of fraud and stock manipulation.

Shares of Adani Energy Solutions soared by more than 8% on Thursday, one day after the power transmission unit of Gautam Adani-led conglomerate announced it had raised USD 1 billion through a share sale.

This is the first public equity raise by the group since a controversial report from Hindenburg Research.

The stock price surged to Rs 1,232.95 on the National Stock Exchange and Rs 1,227.75 on the Bombay Stock Exchange.

Intra-day trading saw peaks at Rs 1,236.70 on the BSE and Rs 1,236 on the NSE.

The BSE Sensex rose 88.64 points to trade at 81,829.98, while the NSE Nifty increased by 53.90 points to trade at 25,005.05.

This remarkable surge is attributed to the successful USD 1 billion fundraising via a qualified institutional placement (QIP). The issue, which opened on Tuesday, was oversubscribed three times with a demand of approximately Rs 26,000 crore.

Marquee investors including GQG, QIP, ADIA, and several top U.S. names participated in the issue alongside domestic institutions such as Bandhan MF, Nomura, and 360 India Infoline.

This is the first fundraise after the group had to scrap a Rs 20,000 crore issue last February following allegations of fraud and stock manipulation by Hindenburg.

Recently, Adani Energy Solutions reported a net loss of Rs 1,190.66 crore for Q1 2024-25, primarily due to exceptional losses from asset divestment, despite total income rising to Rs 5,489.97 crore from Rs 3,772.25 crore in the previous year.

(With inputs from agencies.)