Adani Enterprises launches ₹800 cr NCD public issue to create wealth for Indian investors

• Issue opens on Wednesday, September 04, 2024, and Issue closes on Tuesday, September 17, 2024^#
• NCDs rated as CARE A+; Positive (Single A Plus; Outlook: Positive) by CARE Ratings Limited
• Effective Yield up to 9.90% pa.
• Quarterly, Annual and Cumulative options available
• Security Cover of 1.10x
• NCDs are proposed to be listed on BSE Limited and NSE Limited

NE BUSINESS BUREAU

AHMEDABAD, AUGUST 29

Stating that Adani Group’s mission is to create wealth for Indian investors, Adani Group CFO Jugeshinder Robbie Singh on Thursday announced the launch of Adani Enterprises Limited’s  maiden public issue of non-convertible debentures (NCDs) to raise up to ₹800 crore. The base issue size is ₹400 crore, with an option to retain oversubscription up to another ₹400 crore.

Singh stated, ” NCDs are a small start in public debt securities to allow retail investors to get returns higher than FD returns. The effective yield will be around 9.99 per cent with these NCDs.”

He said, “We are of the fundamental belief, and the evidence around the world shows this, that the core infrastructure and energy of any country has to develop with the capital of that country. It is not appropriate to rely on global capital to build infra and energy.” ..

AEL’s offering will include up to 80,00,000 non-convertible debentures. The NCDs will have a face value of ₹1,000 each and will be secured, rated, and listed. The issue opens on September 4, 2024, and closes on September 17, 2024. The debentures will be listed on both BSE Limited and National Stock Exchange of India Limited.

AEL is offering various options to investors, including tenures of 24, 36, and 60 months, with annual, quarterly, and cumulative interest payment choices across eight series. The coupon rates range from 9.25 per cent to 9.90 per cent per annum, depending on the series chosen.

The company plans to use the proceeds for general corporate purposes. The NCDs will be secured by a first-ranking pari-passu charge on AEL’s loans and advances, maintaining a security cover of at least 110 per cent of the outstanding principal and interest.

This move comes as part of AEL’s strategy to diversify its funding sources. The minimum application size for the NCDs is ₹10,000, and investments can be made in multiples of ₹1,000 thereafter.

The NCDs proposed to be issued under the Issue have been rated “CARE A+; Positive (Single A Plus; Outlook: Positive) by CARE Ratings Limited. Securities with these ratings are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk.

Trust Investment Advisors Private Limited, A.K. Capital Services Limited and Nuvama Wealth Management Limited are the Lead Managers to the Issue.

*The Company shall allocate and allot Series IV NCDs (36 months Annual Interest Payment option) wherein the Applicants have not indicated the choice of the relevant NCD Series.