Adani Enterprises announces a public issue of secured non-convertible debentures worth ₹800 crore.
Ahmedabad (Gujarat) [India], August 29: Adani Enterprises (AEL) announced on Thursday the launch of its first public issuance of secured, rated, listed, redeemable non-convertible debentures.
The company revealed that the non-convertible debentures (NCDs) to be issued under this offering have received a rating of "CARE A+; Positive (Single A Plus; Outlook: Positive)" from CARE Ratings Limited. Securities with this rating are considered to offer an adequate level of safety for timely servicing of financial obligations and carry a low credit risk.
AEL plans to offer up to 80,00,000 non-convertible debentures ("NCDs" or "Debentures"), each with a face value of ₹1,000. The base issue size is ₹400 crore, with an option to retain oversubscription of up to an additional ₹400 crore ("Green Shoe Option"), bringing the total issue size to ₹800 crore.
The company also mentioned that the issue will open on September 04, 2024, and close on September 17, 2024, with the possibility of early closure or extension.
According to the company's statement, the minimum application size for NCDs is ₹10,000 across all series collectively, with increments of ₹1,000 thereafter.
The funds raised from this issue will primarily be used to prepay or repay, either in full or in part, the existing debt of the company (at least 75 percent), with the remaining portion (up to 25 percent) allocated for general corporate purposes, in accordance with the Securities and Exchange Board of India (Issue And Listing of Non-Convertible Securities) Regulations, 2021, as amended from time to time ("SEBI NCS Regulations").
The company further stated that Trust Investment Advisors Private Limited, A.K. Capital Services Limited, and Nuvama Wealth Management Limited are the Lead Managers for the issue.
The NCDs will be available in tenors of 24 months, 36 months, and 60 months, with options for quarterly, cumulative, and annual interest payments across eight series.