Adani Enterprises has launched its maiden public issuance of secured, rated, listed redeemable, non-convertible debentures.
The NCDs proposed to be issued under the Issue have been rated “CARE A+; Positive (Single A Plus; Outlook: Positive) by CARE Ratings. Securities with these ratings are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk.
AEL's offering will include up to 80,00,000 non-convertible debentures ("NCDs" or "Debentures"), each with a face value of Rs 1,000. The base size issue is Rs 400 crore, with an option to retain over-subscription up to an additional Rs 400 crore (“Green Shoe Option”) aggregating up to Rs 800 crore (“Issue” or “Issue Size”). The issue opened on 4 September 2024, and it will close on 17 September 2024, with an option of early closure or extension.
The minimum application size for each application for NCDs would be Rs 10,000 across all series collectively and in multiples of Rs 1,000 thereafter.
The proceeds from the Issue will be utilized primarily towards the prepayment or repayment, in full or in part, of the existing indebtedness availed by the company (at least 75%) and general corporate purposes (up to 25%).
The NCDs are available in tenors of 24 months, 36 months and 60 months with quarterly, cumulative and annual interest payment options across eight series. Coupon rate % per annum ranges from 9.25% to 9.90% while effective annual yield % for NCDs ranges from 9.25% to 9.90%.
Adani Enterprises (AEL) is a part of the Adani portfolio of companies, known for their successful execution of large-scale projects in the energy and infrastructure sectors in India. AEL is recognized as India's largest listed business incubator, with a focus on four core sectors: energy and utility, transportation and logistics, consumer goods, and primary industry. These businesses are a balanced combination of well-established ventures and emerging enterprises, all dedicated to meeting the evolving needs of India.