In a recent filing with the stock exchange, Adani Group announced that after being demerged and listed from Adani Enterprises Limited in July 2015, it has raised its first equity in the capital market.
On Friday, the last trading day of the week, shares of Adani Energy Solutions Limited, a company of the Gautam Adani Group, showed a dull performance. However, experts remain bullish on this stock. Vaishali Parekh of PL Capital has given a high target price for the stock.
Vaishali Parekh predicts that Adani Energy Solutions Limited shares could reach levels of ₹1,400-₹1,600 in the coming days. On Friday, the company’s stock closed at ₹1,106.95 on the BSE. Over the last five trading days, the stock has dropped by nearly 7%, but in one month, it has gained 11%.
Vaishali Parekh mentioned that the stock of Adani Energy Solutions has been in a consolidation phase for a long time. Recently, when the stock reached its 52-week high of ₹1,348, a pattern breakout was observed. However, the stock failed to maintain that level and faced selling pressure. It’s worth noting that Adani Energy Solutions is currently about 50% below its 52-week high.
Recently, Adani Energy Solutions raised ₹8,373.10 crore through Qualified Institutional Placement (QIP). In a filing with the stock exchange, the group company mentioned that this was its first equity raise in the capital market since it was demerged and listed from Adani Enterprises Limited in July 2015. The deal commenced after the market closed on July 30. The base deal size was ₹5,861 crore (US$700 million), with a ‘green shoe’ option (to retain bids in case of high demand) of up to ₹8,373 crore.
The company will use these funds to create bulk transmission corridors for renewable energy, enhance energy efficiency, and improve network planning. Additionally, the funds will be used for loan repayments and to strengthen corporate activities.
