Adani Enterprises Approves Raising Rs 800 Crore Via Bond Sales

Adani Enterprises Ltd. approved raising Rs 800 crore via a public issue of non-convertible debentures. The Adani group flagship company will issue up to 80 lakh NCDs of face value Rs 1,000 each, amounting to Rs 400 crore, with an option to retain over-subscription up to Rs 400 crore, it said in an exchange filing on Tuesday.

The issue will open for subscription on Sept. 4, and will close on Sept. 17, 2024. The secured redeemable non-convertible debentures shall be listed on BSE Ltd. and National Stock Exchange of India, it said.

The date on which the board approves the allotment of the NCDs for the issue will be determined and notified to the designated stock exchange, the company said.

The issue price is Rs 1,000 per NCD. The minimum application size is 10 NCDs, and in multiple of one bond thereafter, according to an earlier draft prospectus.

Adani Enterprises will pay 2% interest per annum to NCD holders over and above the agreed coupon in case of a default, the company said. The company will maintain 110% security cover on the outstanding principal amounts and interest thereon.

The fundraise comes amid reports that the flagship of the ports-to-power conglomerate will tap qualified institutional placements to raise about Rs 16,600 crore.

Adani Energy Solutions Ltd., early last month, raised Rs 8,373 crore through qualified institutional placement for investment in transmission assets and smart metering business.

Shares of Adani Enterprises have risen 24% during the last 12 months and fallen by 7.6% on a year-to-date basis.

All three analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 39%.

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