Adani Enterprises Shocks Market with Announcement of Early Closure of ₹800 Crore NCD Issue

Adani Enterprises Ltd (AEL), the flagship company of the Adani Group, announced on Thursday the early closure of its ₹800 crore secured non-convertible debenture (NCD) issue.

Initially, the issue opened on September 4 and was scheduled to close on September 17. However, in an exchange filing on Thursday, AEL stated that the company’s management committee, through a resolution passed on September 5, 2024, approved an early closure of the issue. 

The Public Issue is set to close on Friday, September 6, 2024, instead of the original closing date of Tuesday, September 17, 2024, in accordance with Regulation 33A of the Securities and Exchange Board of India (SEBI) (Issue and Listing of Non-Convertible Securities) Regulations, 2021.

AEL’s NCD offering comprised up to 80 lakh debentures, each with a face value of ₹1,000. The base issue size was ₹400 crore, with an option to retain an oversubscription of up to an additional ₹400 crore (greenshoe option), bringing the total potential issue size to ₹800 crore, according to the company's statement.

The minimum investment for the NCDs was set at ₹10,000, with further investments required in multiples of ₹1,000. AEL mentioned that the funds raised from this issue will primarily be used to prepay or repay, either fully or partially, existing debts (at least 75% of the proceeds) and for general corporate purposes (up to 25%), in line with SEBI regulations.

Trust Investment Advisors Pvt Ltd, A K Capital Services Ltd, and Nuvama Wealth Management Ltd are the lead managers for this issue, the company said. The NCDs will be available in tenors of 24, 36, and 60 months, with interest payment options offered across eight series, including quarterly, cumulative, and annual payments.

The NCDs have been rated "CARE A+; positive" by CARE Ratings Ltd. This rating signifies that the securities are considered to have a relatively high level of safety regarding timely fulfillment of financial obligations, with a low level of credit risk, explained Adani Group’s CFO, Jugeshinder Robbie Singh, during the launch event.

As of 1:50 PM IST on Thursday, September 5, Adani’s NCD Issue saw high demand when the retail portion of the issue had received subscriptions worth ₹126.73 crore, or 53% of the ₹240 crore reserved for this category. 

The institutional investor segment received subscriptions worth ₹0.22 crore out of the ₹80 crore allocated, while the corporate segment (Non-Institutional Investors) saw bids of ₹23.52 crore out of its ₹240 crore allocation. High Net Worth Individual Investors placed bids totaling ₹47.14 crore out of the ₹240 crore reserved for them.