Adani Energy Solutions Limited (AESL) says it plans to spend part of the USD 1 billion in among others enhancing energy efficiency in India.
The India based firm says it plans to invest the cash in four broad areas. This comprises;
- Investment in transmission assets: Building the bulk evacuation corridors for renewable power.
- Smart metering business: Enhancing energy efficiency and improving network planning.
- Debt repayment: Reducing indebtedness.
- General corporate purposes: Strengthening overall corporate activities.
The firm launched Qualified Institutional Placement (QIP) transaction post-market hours on 30 July 2024 seeking to raise INR 5,861 crore (USD 700 million) and included a green shoe option of up to INR 8,373 crore (USD 1 billion).
The Qualified Institutional Placement saw overwhelming demand, receiving bids worth about six times of the base deal size from a diverse group of investors, including utility-focused US investors entering India for the first time, sovereign wealth funds, major Indian mutual funds, and insurance companies.
“The overwhelming response to our QIP (Qualified Institutional Placement) reflects the strong confidence that investors have in our robust business model, execution capabilities, and effective capital allocation strategy, driving strong growth and exceptional shareholder value,” says Adani Energy Solutions Limited, Chief Executive Officer, Kandarp Patel.
Adani Energy Solutions Limited focuses on; renewable power transmission, energy efficiency through smart meter installation program in India, investment in energy intensity reduction through innovative Cooling as a Solution (CaaS) offerings, and provision of reliable renewable energy solutions to commercial and industrial customers.
“ASEL is revolutionizing the delivery of electricity to end consumers in a reliable, affordable, and sustainable manner, contributing significantly to India’s energy transition,” said Patel.