Adani Enterprises To Launch Maiden Retail Bond Issue On Sept. 4
The company will offer an effective yield of up to 9.90% per annum, and the NCDs will be listed and traded in dematerialised form on BSE and NSE.
Adani Enterprises Ltd., the flagship company of the Adani Group, will launch its maiden public non-convertible debenture issue on Sept. 4. The Ahmedabad-based conglomerate plans to raise up to Rs 800 crore through secured, listed, and redeemable non-convertible bond issues.
AEL’s offering will include up to 80 lakh non-convertible debentures with a face value of Rs 1,000. The base size issue is Rs 400 crore, with an option to retain oversubscription, or greenshoe, of up to an additional Rs 400 crore aggregating up to Rs 800 crore.
The issue opens on Wednesday, Sept. 4, and closes on Tuesday, Sept. 17, 2024. CARE Ltd. has assigned a 'CARE A+', Positive rating to the NCD issue.
The company will offer an effective yield of up to 9.90% per annum, and the NCDs will be listed and traded in dematerialised form on BSE and NSE. The allotment to investors will be on first come first basis.
The company will use the proceeds primarily to prepay or repay the existing borrowing, in full or in part.
According to the offer document, each application will have a minimum number of 10 NCDs, i.e., a minimum application value of Rs 10,000 across all series, and multiples of one NCD thereafter.
The NCDs will be available in 24-month, 36-month, and 60-month terms, with quarterly, cumulative, and annual interest payment options across the eight series.
Infrastructure and utility form the core of group operations, according to Jogeshinder Singh, Adani Group's chief financial officer. "Basic business model remains the same with a higher focus on renewable power."
Expect data centres to be big in the next 10-15 years and will be one of the core users of energy going forward, Singh said in a press conference.
NCD is a small start in public debt securities to allow retail investors to get returns higher than FD returns, Singh said. "Believe the wealth and benefits of wealth creation should go to Indian citizens."
