AEL to launch first Rs 800 crore retail bond issue on 4 September

On Thursday, Adani Enterprises Limited (AEL) announced the initiation of its first public non-convertible debenture (NCD) offering, set to commence on September 4, with a target to raise ₹ 800 crore. This issuance will consist of a maximum of 80,00,000 secured, listed, and redeemable NCDs, each having a face value of ₹ 1,000.

The base issue size is ₹ 400 crore, with an option to retain oversubscription up to an additional ₹ 400 crore (green-shoe option), bringing the total potential to ₹ 800 crore. The offering is scheduled to open on September 4; it will conclude on September 17, with the possibility of early closure or extension, as stated by the flagship entity of the Adani Group.

The minimum application amount for NCDs is set at ₹ 10,000 for all series combined, with subsequent applications in multiples of ₹ 1,000. The NCDs are expected to yield an effective return of up to 9.90 per cent per annum and will be listed on BSE Limited and NSE Limited.

For prepayment or repayment of existing debts

According to the Adani group, the funds raised from this issue will primarily be allocated towards the prepayment or repayment of existing debts (at least 75 per cent) and for general corporate purposes (up to 25 per cent), according to the regulations set forth by the Securities and Exchange Board of India (SEBI). The NCDs will be offered in tenors of 24 months, 36 months, and 60 months, with options for quarterly, cumulative, and annual interest payments across eight different series.

Jugeshinder Singh, Chief Financial Officer of Adani Group, emphasized that infrastructure and utility are fundamental to the group's operations, noting that the "core business model remains unchanged, with an increased emphasis on renewable energy."

The proposed issuance of Non-Convertible Debentures (NCDs) has received a rating of “CARE A; Positive (Single A Plus; Outlook: Positive)" from CARE Ratings. Adani Enterprises Limited (AEL) stands as India's largest business incubator by market capitalization, boasting a long history of developing sustainable infrastructure ventures since 1993.

Driven by emerging sectors such as solar and wind energy manufacturing, as well as airport and road development, the Adani Portfolio experienced a remarkable 50.1 per cent increase in net profit, reaching ₹ 10,279 crore year-on-year in the first quarter of this fiscal year while EBITDA rose by 32.9 per cent to ₹ 22,570 crore.