New Delhi: Adani Enterprises Ltd., the flagship entity of the Adani Group, is set to launch its inaugural public offering of non-convertible debentures on September 4.
The Ahmedabad-based conglomerate aims to raise Rs 800 crore through the issuance of secured, listed, and redeemable non-convertible bonds. Adani Enterprises will issue 80,00,000 NCDs, each priced at Rs 1,000. Initially, the company intends to raise Rs 400 crore, with an option to extend an additional Rs 400 crore through a green-shoe option, bringing the total potential issue size to Rs 800 crore. The NCDs will be listed on both the BSE and NSE.
The subscription period for the issue will commence on September 4 and conclude on September 17. Investors have the choice of debentures with maturities ranging from 24 to 60 months. Interest payouts will be made annually, quarterly, or on a cumulative basis, contingent on the chosen NCD series.
Adani Enterprises has set varying coupon yields for NCD investors, dependent on the duration and frequency of interest payments:
- For a 24-month term, the annual coupon rate is 9.25 per cent.
- For a 36-month term, the coupon rate is 9.32 per cent for quarterly disbursements and 9.65 percent for annual disbursements.
- For a 60-month term, investors can receive 9.56 per cent quarterly or 9.9 percent annually.
In the event of a default or delay, the company will pay an additional interest fee above the coupon rate. Adani Enterprises has committed to paying NCD holders an extra 2 per cent per annum over the agreed coupon rate. Should the applicable laws mandate a lower rate, the company will adhere to the lesser of the two rates.
The principal and interest of the NCDs are secured by a first-ranking, pari passu charge on the company’s present and future non-current loans and advances. This collateral will ensure coverage of at least 110 per cent of the outstanding principal and interest until the NCDs are fully redeemed.
