A bond issue from Adani Enterprises Ltd (AEL) was fully subscribed on the day of its launch, reflecting investor confidence in the conglomerate that was hit by damaging accusations from Hindenburg Research last year.
Sources close to the company said the issue has evoked a strong response from retail investors and high net worth individuals (HNIs).
The Adani flagship is planning to raise up to ₹800 crore through the public issue of secured non-convertible debentures (NCDs).
AEL’s offering will include up to 80 lakh NCDs, each with a face value of ₹1,000.
While the base size of the issue is ₹400 crore, the company has an option to retain over-subscription up to an additional ₹400 crore (greenshoe option). The issue will remain open for subscription till September 17.
Data available from the stock exchanges showed that investors bid for 71.65 lakh bonds against 40 lakh bonds (excluding the greenshoe option) on offer, showing a subscription level of 179 per cent.
Given the strong response, market circles said Adani Enterprises is likely to exercise the greenshoe option.
The NCDs have been rated “CARE A+; positive” by Care Ratings Ltd.
The ratings indicate adequate degree of safety regarding the timely servicing of financial obligations, and such securities carry low credit risk.
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. The interest rate offered ranges between 9.25 per cent and 9.9 per cent.
The minimum size for each application for NCDs will be 10,000 across all series collectively and in multiples of 1,000 thereafter.
Adani Enterprises has said that proceeds from the issue will be utilised primarily towards the prepayment or repayment, in full or in part, of the its debt (at least 75 per cent) and general corporate purposes (up to 25 per cent).
Trust Investment Advisors Pvt Ltd, A.K. Capital Services Ltd and Nuvama Wealth Management Ltd are the lead managers to the issue
Shares of Adani Enterprises on Wednesday ended 0.79 per cent lower at ₹3,012.50 in the BSE.
