The public issue of non-convertible debentures (NCDs) by Adani Enterprises Limited, which opened for subscription on January 6, has received an overwhelming response from investors across categories. The ₹1,000 crore fundraise witnessed its base size of ₹500 crore being fully subscribed within the first ten minutes of opening. Within 45 minutes, the total subscription, including the greenshoe option, had crossed the ₹1,000 crore mark, signaling robust investor confidence.
Strong Investor Appetite Across All Segments
As per the latest data available on the Bombay Stock Exchange (BSE), the NCD issue was oversubscribed 4.32 times by 5:00 PM on the opening day. The demand was not uniform but strong across investor classifications. The corporate category led the charge, being subscribed a remarkable 8.5 times. High-net-worth individuals (HNIs) and retail investors also showed significant interest, with their portions being subscribed 3.04 times and 2.79 times, respectively. The institutional investment category saw bids for 2.65 times the allotted portion.
Given the swift and substantial response, market sources indicate that the issue, originally scheduled to close on January 19, may conclude ahead of the deadline. The company retains the option for an early closure or an extension.
Key Details of the NCD Offering
This marks the third NCD issuance by the flagship Adani Group company. The base issue size is ₹500 crore, with a greenshoe option to retain an additional ₹500 crore, aggregating to ₹1,000 crore. The debentures carry an effective annual yield of up to 8.9% and have been assigned a 'AA-' rating with a Stable outlook by leading credit agencies ICRA and CARE Ratings.
The allotment will be done on a first-come, first-served basis. The NCDs have a face value of ₹1,000 each, with a minimum application size of ₹10,000 (10 NCDs). Investors can choose from tenors of 24 months, 36 months, and 60 months, with interest payment options including quarterly, annual, or cumulative payouts.
Utilisation of Funds and Strategic Vision
Adani Enterprises stated that at least 75% of the net proceeds from the issue will be utilized for the prepayment, repayment, or payment of the company's existing indebtedness and/or related interest. The remaining amount, up to a maximum of 25%, will be earmarked for general corporate purposes.
Commenting on the successful opening, Jugeshinder 'Robbie' Singh, Group Chief Financial Officer of the Adani Group, said, "This third NCD issuance marks another step in our journey to broaden access to India’s capital markets and give retail investors a stake in long-term infrastructure growth. The strong response to our previous offerings reinforces trust in our strategy and financial discipline."
The NCDs are proposed to be listed on both the BSE and the National Stock Exchange (NSE). The lead managers to the issue are Nuvama Wealth Management Limited, Trust Investment Advisors Private Limited, and Tipsons Consultancy Services Private Limited.
On the trading front, shares of Adani Enterprises ended the day at ₹2,258.80 on the BSE, down 0.90%, in line with broader market weakness.
