Adani Enterprises Unveils Rs 800 Crore Retail Bond Issue Starting September 4
Adani Enterprises Limited (AEL) has announced its first-ever public non-convertible debenture (NCD) issue, set to launch on September 4, aiming to raise up to Rs 800 crore. The offering will consist of up to 8,000,000 secured, listed, and redeemable NCDs, each with a face value of Rs 1,000. The initial issue size is Rs 400 crore, with an option to retain oversubscription of up to Rs 400 crore through a green-shoe option, bringing the total potential amount to Rs 800 crore.
The issue will open on September 4 and close on September 17, with an option of early closure or extension, said the flagship company of the Adani Group. The minimum application size for each application for NCDs would be Rs 10,000 across all series collectively and in multiples of Rs 1,000 thereafter. With an effective yield of up to 9.90 percent per annum, the NCDs are proposed to be listed on BSE Limited and NSE Limited.
The company stated that the funds raised from the issue will be used mainly for the prepayment or repayment of existing debt (at least 75%) and for general corporate purposes (up to 25%), in accordance with Securities and Exchange Board of India (SEBI) regulations.
The NCDs are available in tenors of 24 months, 36 months and 60 months with quarterly, cumulative and annual interest payment options across eight series. Infrastructure and utility form the core of group operations, said Jugeshinder Singh, Adani Group's Chief Financial Officer, adding that the basic business model remains the same with a higher focus on renewable power.
The proposed NCDs have received a rating of “CARE A+; Positive (Single A Plus; Outlook: Positive)" from CARE Ratings. Adani Enterprises Limited (AEL) is the largest business incubator in India by market capitalization, with a long history of developing sustainable infrastructure since 1993. The Adani Portfolio, driven by sectors such as solar and wind manufacturing, as well as airports and roads, saw its net profit increase by 50.1% to Rs 10,279 crore year-on-year in the first quarter of this fiscal year. Additionally, EBITDA surged 32.9% year-on-year to reach Rs 22,570 crore.
