According to information available with the exchanges, Adani Enterprises’ ₹1,000 crore public offering of non-convertible debentures (NCDs), which went up for bid today, January 6, had a strong response.
Adani Enterprises NCD Offering Details
This is the flagship Adani group company’s third NCD offering, and it will close on January 19. Adani Enterprises offers the option of an early conclusion or an extension.
According to a PTI report, the subscription surpassed ₹1,000 crore (including the greenshoe option) in 45 minutes, indicating high investor interest. The basic offer of ₹500 crore was taken up in the first ten minutes.
Oversubscription & Investor Response
As of 5 p.m., Adani Enterprises NCD has 4.32 reservations, with all categories oversubscribed, according to the BSE demand schedule. The institutional investment category had 2.65 times as many bids as the corporate category, which had approximately 8.5 times as many. According to BSE statistics, the retail and HNI sections saw bids 2.79 and 3.04 times, respectively.
According to a Reuters article that cited sources, Adani Enterprises’ NCD subscription would probably expire before the January 19 deadline.
NCD Allocation & Yield
Details of Adani Enterprises’ NCD
The billionaire Gautam Adani-led company’s NCD allocation would be on a first-come, first-served basis, according to the January 2 exchange filing. The issue had an annual effective yield of up to 8.9%.
A green shoe option costs an extra ₹500 crore, whereas the basic size is ₹500 crore. According to the filing, rating agencies ICRA and CARE Rating have rated the NCDs as AA- with a “stable” outlook.
NCD Investment & Application Rules
Each NCD has a face value of ₹1000. Every application will be for at least ten NCDs, and after that, in multiples of one NCD. The application will need to be at least ₹10,000.
According to the company, at least 75% of the proceeds from the issuance will be used for the prepayment, repayment, or full or partial payment of the debt the company has taken on, as well as any interest on that debt and the remaining amount (up to a maximum of 25%) for general corporate purposes.
📈 Adani NCD Subscription Highlights
- Offer Size: ₹500 crore (basic) + ₹500 crore (greenshoe option)
- Subscription Speed: Basic ₹500 crore taken in 10 minutes
- Oversubscription: Institutional 2.65x, Corporate 8.5x, Retail 2.79x, HNI 3.04x
- Yield: Up to 8.9% annual effective
- Allocation: First-come, first-served
- Tenure Options: 24, 36, 60 months with multiple interest choices
Series & Interest Options
These NCDs come in eight series with quarterly, yearly, and cumulative interest payment choices, and they are offered in tenors of 24, 36, and 60 months.
“Our efforts to increase access to India’s financial markets and provide individual investors with a share in long-term infrastructure expansion have advanced with this third NCD offering. Jugeshinder “Robbie” Singh, Group CFO, Adani Group, said, “We want to expand on the positive reaction to our prior offers, which confirms faith in our strategy and financial discipline.”
Issue Management & Market Response
The issue’s main managers are Nuvama Wealth Management Limited, Trust Investment Advisors Private Limited, and Tipsons Consultancy Services Private Limited. Amidst general market weakness, Adani Enterprises shares ended the day 0.90% down at ₹2258.80 on the BSE.
💰 Investor Takeaways & Allocation Rules
- Minimum Investment: ₹10,000 (10 NCDs)
- Usage of Funds: 75% debt repayment, up to 25% general corporate purposes
- Ratings: AA- (Stable) by ICRA & CARE
- Allocation Method: First-come, first-served
- Interest Payment Choices: Quarterly, yearly, cumulative
- Tenors: 24, 36, 60 months
