Cemindia Projects Ltd, an entity now controlled by the Adani Group, is reportedly exploring a Qualified Institutional Placement (QIP) to secure up to Rs 5,000 crore in capital. This potential fundraise comes as the company continues to meet with institutional investors, with a launch possibly imminent, according to a Bloomberg report.
Banks Appointed for Share Sale
To facilitate the proposed share sale, Cemindia Projects has appointed two prominent financial institutions: ICICI Securities Ltd and SBI Capital Markets Ltd. These banks will work on the offering, which aims to leverage the robust activity currently observed in India's equity capital markets.
The company's board had previously given its approval for the substantial fundraise on July 23. While discussions are ongoing, and the precise timing and size of the issue could still be adjusted, the move signals Cemindia Projects' intent to strengthen its financial position.
Adani Group's Stake in Cemindia
The Adani Group solidified its control over Cemindia Projects in 2024 through its unit, Renew Exim DMCC. This acquisition was followed by an open offer, ultimately leading to the Adani Group holding a significant 67.46 percent stake in the company. Cemindia Projects, formerly known as ITD Cementation India Ltd, specializes in heavy civil, infrastructure, and engineering, procurement, and construction (EPC) projects across India.
The potential QIP reflects a broader trend of increased fundraising activities in India's equity markets, driven by institutional placements and block deals, even amidst varying equity-market performance.