Adani Enterprises' second NCD issue worth ₹1,000 fully subscribed on first day; check details

Adani Enterprises’ bond issue worth ₹1,000 crore was fully subscribed within three hours of opening on Wednesday, July 9, stock exchange data showed.

The non-convertible debenture (NCD) issue, which opened for subscription on Wednesday and was scheduled to close on July 22, could close early due to the full subscription, PTI reported, citing people familiar with the matter.

NCDs are debt instruments issued by companies to raise capital, offering investors fixed interest rates for a specific period without the option to convert them into company stock. Basically, NCDs are a type of corporate bond that cannot be converted into equity shares of the issuing company.

Adani Enterprises, Adani Group’s flagship firm, offered an interest of up to 9.3% per annum. This was the company’s second public issuance of NCDs that are secure, rated, and listed as redeemable.

In September 2024, Adani Enterprises issued its first public NCD worth ₹800 crore, which was also 90% subscribed on the first day itself.

Key details of the NCD

According to exchange data, the current issue received bids for over ₹1,400 crore by 3:30 pm on Wednesday. The issue was on a first-come, first-served basis. It saw participation entirely from the non-institutional segment, including retail investors, high net worth individuals (HNIs), and corporates.

"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 base size of the issue is ₹500 crore with an option to retain oversubscription up to an additional ₹500 crore (greenshoe), bringing the total to ₹1,000 crore. The NCDs have a face value of ₹1,000 each, and applicants could apply for a minimum of 10 NCDs, followed by multiples of 1. This means that the minimum application size of the issue is ₹10,000.

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.

"At least 75% 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 a maximum of 25%) for general corporate purposes," the company had said in a statement on July 6.

The lead managers of the issue are Nuvama Wealth Management Ltd, Trust Investment Advisors Pvt Ltd, and Tipsons Consultancy Services Pvt Ltd.

Shares of Adani Enterprises on Wednesday ended 0.35% down at ₹2,582.30 apiece on the NSE. The company’s market capitalisation stood at ₹2,98,044.09 crore.