Adani Enterprises raises $850m through share sale

Indian infrastructure developer Adani Enterprises has raised $850m in a share sale to institutional investors. Reports say the money will be invested in the company’s coal mining and oil and gas exploration businesses.

Indian firm Adani Enterprises has raised $850 million in a share sale to institutional investors, a source close to the company confirmed to Infrastructure Investor.

The share sale is said to be the largest Indian institutional sale in 2010 with Bank of America, IDFC Capital, Morgan Stanley, Citigroup, UBS, Enam Securities, ICICI Securities and Kotak Mahindra managing the offering, according to media reports.

Reports suggested the floor price of the sale was INR536.15 (€8.80; $11.30) per share, a discount of about 1.5 percent to the stock’s closing price of INr543.80 on Tuesday.

The company had planned to raise $600 million through the Qualified Institutional Placement with an option to increase the sale to $850 million if demand was strong.

The proceeds will be used for its coal mining and oil and gas exploration businesses, and to repay loans, according to media reports.