Adani Energy Solutions Raises $1bn in Equity Placement Amidst Recovery Efforts

• Adani Energy Solutions, the power transmission and distribution arm of Adani Group, raised $1bn in an equity sale, marking its first since halting a previous share placement due to corporate fraud allegations.
• The Rs83.7bn qualified institutional placement saw demand six times above the base deal size, with major buyers including INQ, Citigroup, Nomura, and SBI.
• Proceeds from the share sale will be used to pay down debt and invest in the company's smart metering business, reflecting strong institutional investor confidence in India's energy transition.
• The equity sale is part of founder Gautam Adani's efforts to recover from scandals and diversify the conglomerate's business interests, which include ports, power, and cement.
• Despite past allegations of fraud by Hindenburg Research, Adani Group has largely recovered, focusing on deleveraging and expanding into renewable energy to support India's goal of 500 gigawatts of green generation by 2030.

Source: Financial Times