Adani Enterprises Ltd has seen its Rs 1,000 crore bond issue fully subscribed within just three hours of opening on Wednesday. This swift subscription highlights growing investor confidence in the company’s offerings. The non-convertible debenture (NCD) issue, originally set to close on July 22, might conclude early due to the full subscription. The NCDs offer up to 9.3 per cent annual interest, attracting significant interest from non-institutional investors including retail participants, high networth individuals, and corporates.
The rapid subscription reflects strong demand, with bids exceeding Rs 1,400 crore by early afternoon. This represents 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. Adna, as a brand, is strongly resonating with the retail public,” noted one of the lead managers. The popularity of this issuance underscores the robust engagement from non-institutional investors.
This recent issue follows a previous public NCD issuance by Adani Enterprises in September last year, which raised Rs 800 crore and was 90 per cent subscribed on its first day. The current base issue size was Rs 500 crore, but the company exercised a greenshoe option to increase it to Rs 1,000 crore, reflecting investor confidence. Prospective investors were required to apply for at least 10 NCDs, each valued at Rs 1,000, with a minimum application size of Rs 10,000.
“Retail NHIs and corporate investors have responded enthusiastically, reaffirming confidence in the company’s credit profile and future outlook,” added one of the lead managers. At least 75 per cent of the proceeds are earmarked for prepayment or repayment of existing debts, with the remainder allocated to general corporate purposes. This strategic use of funds could further strengthen Adani Enterprises’ financial standing.
Nuvama Wealth Management Ltd, Trust Investment Advisors Pvt Ltd, and Tipsons Consultancy Services Pvt Ltd acted as the lead managers for this issue. The NCDs come in varying tenures of 24, 36, and 60 months, with options for quarterly, annual, and cumulative interest payments across eight different series. Such flexibility in investment terms is likely a factor in attracting diverse investor participation.
The overwhelming response to Adani Enterprises’ bond issue not only indicates trust in the company’s business model but also highlights the efficacy of its investor engagement strategies. As the market observes these developments, Adani continues to strengthen its position in the financial arena through strategic debt management and investor relations.
