Adani Enterprises' Public Bond Issue Oversubscribed on Launch Day, Raising $116.7 Million

Adani Enterprises' public debt issue has seen strong demand, with the offering oversubscribed on launch day. The company plans to raise up to 10 billion rupees ($116.7 million) through the sale of two-, three-, and five-year bonds. The issue received bids worth 15 billion rupees as of 5 p.m. IST, exceeding the target. Corporates led demand, followed by high net-worth individuals and retail investors. The issue will now close on Friday, ahead of its earlier schedule of July 22.

Adani Enterprises Ltd's debt issue has seen overwhelming demand, with the offering oversubscribed on its launch day. The company aimed to raise up to 10 billion rupees ($116.7 million) through the sale of two-, three-, and five-year bonds. The issue received bids worth 15 billion rupees as of 5 p.m. IST, exceeding the target. The debt instruments, issued as non-convertible debentures (NCDs), were subscribed entirely by the non-institutional segment, including corporates, high net-worth individuals, and retail investors. This strong demand led to an early closure of the issue, which was initially scheduled to run until July 22 but is now expected to close on Friday [1].

The NCDs carry an annual interest of up to 9.3%, with a face value of 1,000 rupees each. Investors could apply for a minimum of 10 NCDs, making the minimum application size 10,000 rupees. The base issue size of the current NCD is 500 crore, with an option to retain over-subscription up to an additional 500 crore (greenshoe option), aggregating up to 1,000 crore. At least 75% of the proceeds will be utilized towards the prepayment or repayment, in full or in part, of the existing indebtedness availed by the company, while the balance (up to a maximum of 25%) will be used for general corporate purposes [1].

The strong response from retail investors and HNIs reflects confidence in Adani Enterprises' credit profile and future outlook. This is the second public issuance of secured, rated, listed, redeemable NCDs by Adani Enterprises Ltd (AEL), following a 90% subscription rate for its first public NCD issue of 800 crore in September last year [1].

References:
[1] https://www.freepressjournal.in/business/adani-enterprises-1000-crore-bond-issue-fully-subscribed-investors-respond-in-just-three-hours
[2] https://www.business-standard.com/companies/news/adani-enterprises-1-000-cr-bond-issue-fully-subscribed-in-just-3-hours-125070900899_1.html
[3] https://stocktwits.com/news-articles/markets/equity/dabur-adani-enterprises-ultratech-cement-beml-rvnl-on-july-7-stock-watchlist/chFtETpRPUv
[4] https://timesofindia.indiatimes.com/business/india-business/adani-bond-sale-rs-1000-crore-issue-fully-subscribed-in-3-hours-retail-investors-drive-demand-ncd-offer-may-close-early-amid-strong-response/articleshow/122343114.cms