Abu Dhabi Investment Authority and Qatar Investment Authority have invested in Adani Energy Solutions’ share sale in India of up to $1 billion, two sources said, its first such deal since a scathing report from short-seller Hindenburg Research last year.
The deal marks Adani Group’s first fundraising from equity markets after a $2.5 billion share sale was scrapped in February last year following U.S.-based Hindenburg Research’s accusations of improper use of offshore tax havens and stock manipulation. Adani has always denied wrongdoing.
The list of more than 50 investors also included GQG Partners, Nomura and India’s Bandhan Mutual Fund, said the sources, who had direct knowledge of the deal but declined to be named as investor names are not public.
Adani Energy, led by billionaire Gautam Adani, and the investors named above did not respond to Reuters queries.
The investment will further help Adani which has managed to win investors’ backing after Hindenburg’s report last year sparked a sell-off of more than $100 billion in the group’s stock. The shares have recovered significantly since then.
Adani Energy, the group’s power transmission and distribution company, raised funds through a Qualified Institutional Placement, a tool used by listed Indian companies to raise funds from large institutions.
An Adani Energy statement said the floor price for the issue has been set at 1,027.11 Indian rupees ($12.27), at a discount to Tuesday’s close of 1,124.9 rupees, without sharing any investor names.
The share sale was for $700 million, with a so-called greenshoe option for a further $300 million, the sources said. The share sale opened on Tuesday.
Adani Energy’s shares rose about 7% on Tuesday. The stock, however, is roughly 60% lower than its levels prior to the Hindenburg Research accusations against the group.
