Non-convertible bonds (NCDs) will have an effective annual yield ranging from 9.25% to 9.90%.
“Demand for Adani Enterprises’ first public bond issue has been good from retail participants. This is the first non-financial public issue of this financial year and being a well-recognised brand, it is attractive as per customer feedback. There is also an option for 3-year and 5-year applications and it is a good entry point to get some duration as we are likely to see interest rates come down in the coming months,” said Vishal Goenka, Co-Founder, IndiaBonds.com.
The NCD is rated CARE A+; Positive (A Plus stand-alone; Outlook: Positive) by CARE Ratings Limited. Adani Enterprises said the coupons on the NCDs vary across different tenors, including 24 months, 36 months and 60 months with quarterly, cumulative and annual interest payment options in eight series.
“The offer by AEL will comprise up to 80,00,000 non-convertible debentures, each with a face value of Rs 1,000. The base issue size is Rs 400 crore, with an option to withhold oversubscription up to an additional Rs 400 crore (“Green Shoe Option”), aggregating up to Rs 800 crore (“Issue” or “Issue Size”),” the company said in a press release. The minimum application size for the NCDs is Rs 10,000, equivalent to 10 NCDs, across all series collectively, and in multiples of Rs 1,000 (1 NCD) thereafter. The proceeds of the issue will be utilised primarily for prepayment or repayment of existing indebtedness availed of by the company (at least 75%) and for general corporate purposes (up to 25%). The bond offering is being managed by Trust Investment Advisors Private Limited, AK Capital Services Limited and Nuvama Wealth Management Limited.
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