Adani Enterprises announces public issuance of secured NCDs to raise up to Rs 800 cr

Adani Enterprises Ltd (AEL) — the flagship company of the Adani Group — on Thursday announced the public issuance of secured non-convertible debentures to raise up to Rs 800 crore. The issue will open on September 4 and close on September 17, with an option of early closure or extension, the company announced here during the launch of the NCDs.

The NCDs proposed to be issued have been rated "CARE A+; positive" by CARE Ratings Ltd.

Securities with these ratings are considered to have adequate degree of safety regarding timely servicing of financial obligations and such securities carry low credit risk, said Adani Group's Chief Financial Officer (CFO) Jugeshinder Robbie Singh, while addressing media here at the launch.

AEL's offering will include up to 80 lakh NCDs, 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 (greenshoe option) aggregating up to Rs 800 crore ("issue" or "issue size"), the company said in a statement.

The minimum size for each application for NCDs will be Rs 10,000 across all series collectively and in multiples of Rs 1,000 thereafter.

The company announced that the proceeds from the issue will be utilised primarily towards the prepayment or repayment, in full or in part, of the existing indebtedness availed by our company (at least 75 per cent) and general corporate purposes (up to 25 per cent) in compliance with the Securities and Exchange Board of India regulations.

Trust Investment Advisors Pvt Ltd, A K Capital Services Ltd and Nuvama Wealth Management Ltd are the lead managers to the issue, the company said.

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, it added.