Did Adani Enterprises Ltd's Rs 1,000 crore NCD issue get fully subscribed in just 3 hours?
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Synopsis
In an impressive display of investor confidence, Adani Enterprises Limited's latest NCD issue worth Rs 1,000 crore was fully subscribed within just three hours. This remarkable participation underscores the strong fundamentals and appeal of AEL among retail and corporate investors alike.
Key Takeaways
- Fully subscribed in just three hours
- Attracted bids over Rs 1,400 crore
- Strong participation from non-institutional investors
- Base issue size of Rs 500 crore with Green Shoe Option
- Competitive yields compared to similar investments
New Delhi, July 9 (NationPress) Adani Enterprises Limited's (AEL) second public issuance of secured, rated, and listed redeemable, non-convertible debentures (NCDs) worth Rs 1,000 crore was entirely subscribed within just three hours of its launch on Wednesday.
The bond offering attracted bids exceeding Rs 1,400 crore by 15:30 hours, as per data from the stock exchange.
This issuance operated on a first-come, first-served basis, with participation solely from the non-institutional segment, comprising retail investors, high net worth individuals (HNIs), and corporate entities.
Although the issue was set to conclude on July 22, it is anticipated to close early due to full subscription.
Experts in the market emphasize that the distinctiveness of this bond issue lies in the strong engagement from non-institutional investors, as retail HNIs and corporations are drawn in by the company's solid fundamentals and credit standing.
The base issue size is Rs 500 crore, with an option to retain oversubscription up to an additional Rs 500 crore (Green Shoe Option), allowing a cumulative total of Rs 1,000 crore, according to the flagship company of the Adani Group.
The NCDs have a face value of Rs 1,000 each. Each application must include a minimum of 10 NCDs and multiples of 1 NCD thereafter. The minimum application amount is Rs 10,000.
These NCDs provide competitive yields when compared to similarly rated NCDs and fixed deposits, and are intended to be listed on both the BSE and the NSE. The NCDs have received ratings of "Care AA-; Stable" and "(ICRA) AA- (Stable)", as indicated by the company.
AEL's initial NCD issuance of Rs 800 crore, launched in September of the previous year, was completely subscribed on the first day itself.
At least 75 percent of the funds raised from this issuance will be allocated toward the prepayment or repayment, either fully or partially, of the existing debts incurred by the company, with the remaining 25 percent directed towards general corporate purposes.
The NCDs are available with tenors of 24 months, 36 months, and 60 months, offering various interest payment options—quarterly, annual, and cumulative—across eight series, as stated by the company.
Point of View
I observe that the swift subscription of Adani Enterprises Limited's NCD issue signifies a strong endorsement from both retail and corporate investors. This trend hints at a resilient market sentiment and reflects positively on the company's fundamentals. It is crucial for investors to remain informed and cautious as they navigate these opportunities.
NationPress
19/07/2025
Frequently Asked Questions
What is the total amount of Adani Enterprises' NCD issue?
The total amount of Adani Enterprises' NCD issue is Rs 1,000 crore.
How quickly was the NCD issue subscribed?
The NCD issue was fully subscribed within just three hours of its opening.
Who participated in the NCD subscription?
Participation came entirely from the non-institutional segment, including retail investors, high net worth individuals (HNIs), and corporates.
What will the proceeds from the NCD issue be used for?
At least 75% of the proceeds will be used for prepayment or repayment of existing debt, with the remaining 25% allocated for general corporate purposes.
What are the ratings for these NCDs?
The proposed NCDs have been rated 'Care AA-; Stable' and '(ICRA) AA- (Stable)'.
