“Demand for Adani Enterprises maiden Bond Public Issue has been good from retail participants. This is the first non-financial public issuance this financial year and being a well-recognised household name makes it attractive as per client feedback. There is also option for 3y and 5y applications and is a good entry point to get some duration as we are likely to see interest rates go down in the next few months,” said Vishal Goenka, Co-Founder of IndiaBonds.com
The NCD is rated CARE A+; Positive (Single A Plus; Outlook: Positive) by CARE Ratings Limited. Adani Enterprises stated that the NCDs’ coupons vary based on different tenures, which include 24 months, 36 months, and 60 months with quarterly, cumulative, and annual interest payment options across eight series.
“AEL’s offering will include up to 80,00,000 non-convertible debentures, each with a face value of Rs 1,000. The base size issue is Rs 400 crore, with an option to retain over-subscription up to an additional Rs 400 crore (‘Green Shoe Option’) aggregating 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, across all series collectively, and in multiples of Rs 1,000 (1 NCD) thereafter. The proceeds from the issue will be utilized primarily towards the prepayment or repayment of the existing indebtedness availed by the company (at least 75%) and for general corporate purposes (up to 25%).The debenture offering is being managed by Trust Investment Advisors Private Limited, A.K. Capital Services Limited, and Nuvama Wealth Management Limited.
