Adani Enterprises to raise ₹1,000cr via public NCD issue
What's the story
Adani Enterprises, the flagship company of the Adani Group, is gearing up to raise as much as ₹1,000 crore through a public issue of non-convertible debentures (NCDs). The move comes as part of the company's strategy to meet its financing needs. The NCDs are rated CARE AA- with a stable outlook by CARE Ratings and AA- (Stable) by ICRA.
Investment details
NCDs offer multiple tenors and interest payment options
The public issue of NCDs comes in eight series with tenors of 24 months, 36 months, and 60 months. Investors can choose between annual, quarterly, or cumulative interest payment options. The coupon rates vary from 8.48% to 8.90% per annum depending on the series and tenor chosen by the investors.
Fund allocation
Subscription period and usage of proceeds
The public issue opens for subscription on January 6 and closes on January 19. The proceeds from this issue will be utilized in line with the firm's financing requirements, including refinancing and general corporate purposes. Each NCD has a face value of ₹1,000, and will be issued in a minimum application size of 10 NCDs (₹10,000) and thereafter in multiples of one NCD.
Security cover
NCDs rated by CARE Ratings and ICRA
The NCDs have been rated CARE AA- with a stable outlook by CARE Ratings and AA- (Stable) by ICRA. The issue comes with a security cover of 1.10 times. Trust Investment Advisors is the lead manager to this issue, that comprises a base size of ₹500 crore with an additional green shoe option of another ₹500 crore, taking the total to ₹1,000 crore.