Adani Enterprises to launch ₹800 cr NCD issue on Sep 4

Adani Enterprises plans to raise ₹800 crores through its first public issue of up to 80 lakh non-convertible debentures (NCDs). The subscription period for the issue will run from September 4 to September 17. The management committee had approved and adopted the issue prospectus on August 27, 2024, said the company in a late-night regulatory filing today.

Despite the announcement, Adani Enterprises shares fell 1% to ₹3,037 from the previous day’s close of ₹3,067.1 on the NSE today. At the time of writing, shares were trading at ₹3,043.85. The company’s total market capitalisation stood at ₹3.46 lakh crore.

Each secured, rated, listed, redeemable NCD will have a face value of ₹1,000, with a base issue size of ₹400 crores and a green shoe option to retain an oversubscription of another ₹400 crores.

This issue is the company's first offering since the Hindenburg Research allegations last year.

The company initially had planned to raise ₹1,000 crore through the bond issue. This plan was, however, withdrawn on August 16 for commercial and strategic reasons.

The bonds will be listed on the NSE and the BSE, with BSE as the designated stock exchange. The company will offer bonds with various maturities ranging from two to five years. However, details regarding the allocation of the funds raised have not been disclosed.

The minimum application size for the bonds is set at ₹10,000, with increments of ₹1,000 thereafter. The annual coupon rates are 9.25% for two-year bonds, 9.65% for three-year bonds, and 9.90% for five-year bonds.

Bondholders can choose to receive coupon payments at maturity, resulting in effective yields matching the annual coupon rates for two-year, three-year, and five-year bonds. For the three-year and five-year bonds, there is also an option for quarterly interest payments, with coupon rates of 9.32% and 9.56%, respectively.

The date for the approval from the management committee of the NCD allotment will be decided later by either the board of directors or the committee itself.

"The actual allotment of NCDs may take place on a date other than the deemed date of allotment. All benefits relating to the NCDs, including interest on NCDs, shall be available to the debenture holders from the deemed date of allotment," the exchange filing said.