The bond sale comes as the conglomerate tries to raise money through a mix of routes | (Photo: Shutterstock)
By Divya Patil
Adani Enterprises Ltd.’s first bond issue aimed at retail investors opens for subscription on Wednesday, as the conglomerate seeks to diversify its funding base after a brutal attack by short sellers last year.
The flagship of Indian billionaire Gautam Adani’s group plans to raise up to Rs 800 crore ($95.3 million) through the issuance, with 60 percent of the amount earmarked for high net worth individuals and private individuals, the prospectus said. Another 30 percent is for non-institutional investors such as corporates, while the remaining 10 percent is for institutional buyers.
The bond sale comes as the conglomerate seeks to raise funds through a mix of routes. A strong response to the public offering will be a sign of investor confidence, underscoring the group’s recovery after a Hindenburg Research report in January 2023 led to a rout in its stocks and bonds.
Adani Enterprises, which had earlier planned a Rs 10 billion public bond issue for January last year, postponed it following allegations by Hindenburg of misconduct within the company, which the group has repeatedly denied.
Since then, the group has been growing again and is considering raising new funds through a share sale for its flagship, after selling stakes in its energy business. The group has enough cash to cover more than 30 months of debt payments, it said last month, as the port-to-energy conglomerate tries to ease concerns about its liquidity risk.
At issuance, Adani Enterprises will offer bonds maturing in two, three and five years, with yields ranging from 9.25 percent to 9.90 percent. At least three-quarters of the proceeds will be used to prepay or repay the company’s debt, while the remainder is for general corporate purposes.
Trust Investment Advisors Pvt., AK Capital Services and Nuvama Wealth Management are the lead managers for the public offering, which is expected to close on September 17.
First publication: 04 Sep 2024 | 08:32 am IST