Adani Enterprises' Rs 1,000 cr bond issue fully subscribed in just three hrs

Adani Enterprises' recent bond issue of Rs 1,000 crore was fully subscribed within three hours of opening. The strong participation from retail and corporate investors highlights confidence in the company's credit profile.

Adani Enterprises Ltd's Rs 1,000 crore bond issue was fully subscribed within three hours of opening on Wednesday, stock exchange data showed.

The non-convertible debenture (NCD) issue, which opened on Wednesday and was to close on July 22, may see early closure due to the issue being fully subscribed, sources said. NCDs are debt instruments issued by companies to raise funds from investors, promising fixed interest payments. The Adani group's flagship firm promised up to 9.3 per cent interest per annum. The issue received bids worth over Rs 1,400 crore by 15.30 hrs, stock exchange data showed.

The offering was on a first-come, first-served basis and saw participation entirely from the non-institutional segment, including retail investors, high networth individuals and corporates. This was Adani Enterprises' second public issuance of secured, rated, listed redeemable, non-convertible debentures.

"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," said one of the lead managers. "Retail NHIs and corporate investors have responded enthusiastically, reaffirming confidence in the company's credit profile and future outlook."

The current issue follows AEL's first public NCD issue of Rs 800 crore in September last year, which was 90 per cent subscribed on the first day. The base issue size of the current NCD is Rs 500 crore, with an option to retain over-subscription up to an additional Rs 500 crore (greenshoe option), aggregating up to Rs 1,000 crore.

The NCDs have a face value of Rs 1,000 each. Applicants could apply for a minimum of 10 NCDs and in multiples of 1 NCD thereafter, making the minimum application size of Rs 10,000.

"At least 75 per cent of the proceeds from the issuance will be utilised towards the prepayment or repayment, in full or in part, of the existing indebtedness availed by the company and the balance (up to maximum of 25 per cent) for general corporate purposes," the company had said in a statement on July 6.

Nuvama Wealth Management Ltd, Trust Investment Advisors Pvt Ltd and Tipsons Consultancy Services Pvt Ltd are the lead managers to the issue. The NCDs are available in tenors of 24 months, 36 months, and 60 months with quarterly, annual, and cumulative interest payment options across eight series.