Adani Enterprises to raise Rs 800 crore through its maiden bond sale

Adani Enterprises bond issuance: Adani Enterprises Limited (AEL) has announced its first public issue to raise up to Rs 800 crore through the issuance of secured, rated, listed, redeemable, non-convertible debentures (NCDs), according to a stock exchange filing. 

Gautam Adani-led conglomerate is offering up to 80 lakh NCDs, each with a face value of Rs 1,000. The base issue size is set at Rs 400 crore, with an option to retain an additional Rs 400 crore through a green shoe option, bringing the total potential amount to Rs 800 crore.

The NCDs will be issued as per the terms outlined in the company’s prospectus, which was approved by the Management Committee of AEL's Board of Directors during a meeting held on August 27, 2024. 

This follows the initial approval by the Board of Directors on August 4, 2022, which allowed the company to undertake a public issuance of NCDs up to Rs 1,000 crore.

A strong response to the issuance of public bonds will indicate investor confidence in the future of the company after it had to face serious allegations from a US-based short seller Hindenburg Research. 

Adani Enterprises also planned to raise Rs 1,000 crore in public bond issuance for January 2023 which was shelved despite being fully subscribed after the Hindenburg allegations shook the Indian stock markets. 

The company is expected to use the funds raised through this NCD issue for various corporate purposes, including debt repayment and capital expenditures.