Adani Enterprises’ ₹1,000 Crore Bond Issue Fully Subscribed Within 3 Hours

Adani Enterprises Ltd’s ₹1,000 crore bond issue was fully subscribed within three hours of opening on Wednesday, stock exchange data showed.

The non-convertible debenture (NCD) issue, which opened on Wednesday and was scheduled to close on July 22, may see early closure due to the issue being fully subscribed, sources said.

NCDs are debt instruments issued by companies to raise funds from investors, offering fixed interest payments. Adani Group’s flagship firm promised up to 9.3% interest per annum.

The issue received bids worth over ₹1,400 crore by 3:30 p.m., stock exchange data confirmed.

The offering, conducted on a first-come, first-served basis, saw 100% participation from the non-institutional segment, including retail investors, high-net-worth individuals (HNIs), and corporates.

This marks Adani Enterprises’ second public issuance of secured, rated, listed, redeemable NCDs.

“What sets this issue apart is the strong and encouraging participation that has entirely come from the non-institutional segment. Adani, as a brand, is strongly resonating with the retail public,” said one of the lead managers. “Retail NHIs and corporate investors have responded enthusiastically, reaffirming confidence in the company’s credit profile and future outlook.”

The current issue follows AEL’s first public NCD offering of ₹800 crore in September 2023, which was 90% subscribed on the first day.

The base size of the current issue was ₹500 crore, with a greenshoe option of an additional ₹500 crore, totaling ₹1,000 crore.

Each NCD has a face value of ₹1,000, with a minimum application requirement of 10 NCDs and multiples of one thereafter translating to a minimum investment of ₹10,000.

“At least 75% of the proceeds from the issuance will be utilized towards the prepayment or repayment, in full or in part, of the existing indebtedness availed by the company, and the balance (up to a maximum of 25%) for general corporate purposes,” Adani Enterprises said in a July 6 statement.

Nuvama Wealth Management Ltd, Trust Investment Advisors Pvt Ltd, and Tipsons Consultancy Services Pvt Ltd are the lead managers for the issue.

The NCDs are available in tenors of 24, 36, and 60 months, with options for quarterly, annual, and cumulative interest payments across eight series.

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