Adani Enterprises’ 1,000 crore public issue of non-convertible debentures (NCDs), which opened for bidding today, January 6, garnered a solid response, according to data available with the exchanges. This is the third NCD issue by the flagship Adani group company and will close on January 19, with an option of early closure or extension available with Adani Enterprises.
As per a PTI report, the base offer for 500 crore was lapped up in the first 10 minutes with the subscription crossing 1,000 crore (including the greenshoe option) within 45 minutes, signaling strong investor demand.
According to the BSE demand schedule, Adani Enterprises NCD was booked 4.32 times as of 5 pm, with all categories being oversubscribed. Corporate category was booked the most at over 8.5 times, followed by the institutional investment category with 2.65 times bids. Retail and HNI portions saw bids for 2.79 times and 3.04 times, BSE data showed.
Subscription for Adani Enterprises’ NCD will likely end before the slated January 19 date it was originally slated to close on, a reuters report, quoting sources, said.
Adani Enterprises NCD Details
As per the exchange filing dated January 2, the billionaire Gautam Adani-led firm’s NCD allotment will be on a first-come, first-served basis. The issue offered an effective yield of up to 8.9% per annum.
The base size is 500 crore, with a green shoe option of an additional 500 crores. The NCDs are rated as AA- with ‘stable’ outlook by rating agencies ICRA and CARE Rating, the filing stated.
The NCDs have a face value of Rs.1000 each. Each application will be for a minimum of 10 NCDs and in multiples of one NCD thereafter. The minimum application size would be 10,000.
NCDs are proposed to be listed on BSE and NSE.
At least 75% of the proceeds from the issuance will be used towards the prepayment or repayment or payment, in full or in part, of the indebtedness availed by the company; and/or any interest on such indebtedness and the balance (up to a maximum of 25%) for general corporate purposes, the company said.
These NCDs are available in tenors of 24 months, 36 months and 60 months, with the option of quarterly, annual and cumulative interest payment options across eight series.
“This third NCD issuance marks another step in our journey to broaden access to India’s capital markets and give retail investors a stake in long-term infrastructure growth. The strong response to our previous offerings reinforces trust in our strategy and financial discipline, and we aim to build on that momentum,” said Jugeshinder ‘Robbie’ Singh, Group CFO, Adani Group.
Nuvama Wealth Management Limited, Trust Investment Advisors Private Limited and Tipsons Consultancy Services Private Limited are the lead managers to the Issue.
Shares of Adani Enterprises settled 0.90% lower at 2258.80 on the BSE amid broader market weakness.
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