Adani Enterprises NCD Early Closing: Adani Enterprises to Close NCD Issue Tomorrow, Not on September 17 as Planned

Adani Enterprises has announced that it will close its public issue early on Friday, September 6, as per the earlier schedule on September 17. The Rs 400 crore bond issue, which opened on Wednesday, was oversubscribed by nearly 221% on day 2 amid heavy participation from retail investors.

The annual effective yield on non-convertible debentures (NCDs) will be between 9.25 per cent and 9.90 per cent.

“The demand from retail participants for Adani Enterprises’ IPO has been good. This is the first non-financial IPO this financial year and the fact that it is a well-known household name based on customer feedback makes it attractive. There is also an option for 3-year and 5-year exercises and it is a good entry point to get some time as interest rates are likely to come down in the next few months,” said Vishal Goenka, Co-Founder, IndiaBonds.com.

NCD has been rated CARE A+; Positive (Single A Plus; Outlook: Positive) by CARE Ratings Limited. Adani Enterprises said the coupons of NCDs vary across different tenors such as 24 months, 36 months and 60 months with quarterly, cumulative and annual interest payment options in eight series.

“AEL’s offer will comprise up to 80,00,000 non-convertible debentures of face value Rs 1,000 each. The base size issue is Rs 400 crore with an option to hold overdraft up to an additional 400 crore rupees up to Rs 800 crore (‘Issue’ or ‘Issue Size’),” the company said in a press release. The minimum application size for NCDs is Rs 10,000, equivalent to 10 NCDs collectively across all series, and in multiples of Rs 1,000 (1 NCD) thereafter. The proceeds from the issue will be primarily utilised for early redemption or repayment of existing debt availed by the company (minimum 75%) and general corporate purposes (maximum 25%). The bond offer is being managed by Trust Investment Advisors Private Limited, AK Capital Services Limited and Nuvama Wealth Management Limited.