Druckenmiller bets on Adani, Adani Energy’s $1 bn QIP subscribed 6x with `50k cr demand

New Delhi: Billionaire Stanley Druckenmiller’s family office-led investment firms have made their maiden bet on Adani group, seeking shares of the conglomerate’s power transmission unit in an institutional sale that was oversubscribed six-times and fetching demand of over Rs 50,000 crore against an issue size of $1 billion.

Duquesne Family Office and two other US-based long-only funds - Driehaus Capital Management and Jennison Associates - invested in the qualified institutional placement (QIP) of Adani Energy Solutions, sources with direct knowledge of the matter said. The Rs 8,340 crore ($1 billion) issue saw over 120 investors seek shares in the firm that is into power transmission, distribution and smart metering business.

Sources said the issue marked the debut of highly prestigious long-only investors Duquesne Family Office, Driehaus Capital Management and Jennison Associates which are known for their strong performance. These investors are known for investing only in companies with high governance and are known for staying invested for decades.

The QIP was the first public equity raise by the conglomerate since a damning Hindenburg report last year wiped away billions in shareholder value. The demand generated made the Adani Energy Solution Ltd QIP the largest in the energy space.

Adani Energy Solutions’ stock gained over 15 per cent in intraday on Thursday before closing 11.24 per cent higher in Mumbai. Duquesne is founded by billionaire Stanley Druckenmiller, who along with George Soros in 1992 broke the Bank of England by shorting the British pound, leading to its crash and earnings over a billion dollars.

Adani Group has a history of introducing several long-only investors in the market. In the past years, it has brought large investors including GQG Partners, Qatar Investment Authority (QIA), and International Holding Company (IHC).