Adani Enterprises’ Maiden Bond Issue Oversubscribed On First Day

The main office of the publicly traded Indian multinational Adani Enterprises Limited, a vital part of the Adani Group, is located in Ahmedabad. Mining and trading of coal and iron ore are among the company’s primary operations. Adani Enterprises’ inaugural issuance of non-convertible debentures (NCDs) garnered bids worth Rs. 716 crore on the first day, surpassing the base size of Rs. 400 crore. The issue, available for subscription for two weeks, received 1.8 times the number of bids compared to the offer.

Bumper opening for the Adani Enterprises Limited bond on first day:

On the first day of the bid, Adani Enterprises Ltd.’s initial public offering of nonconvertible debentures oversubscribed by 179.14% compared to the base issue size of Rs 400 crore. The conglomerate, which has its headquarters in Ahmedabad, plans to issue secured, listed, redeemable, and non-convertible debentures (NCDs) for as much as Rs 800 crore.

Adani Group’s flagship company may also retain a greenshoe option, or oversubscription, of up to Rs 400 crore. The debt issue’s subscription period opened on September 4 and will end on September 17, 2024. CARE Ltd. has assigned the NCD issue a “CARE A+” rating, which denotes a favourable prognosis.

CFO Jogeshinder Singh said:

Chief financial officer (CFO) of Adani Group, Jogeshinder Singh, states that infrastructure and utilities constitute the backbone of the company’s activities. “The fundamental business plan stays the same, with a stronger emphasis on renewable energy sources.” In a press conference, Singh stated that one can anticipate the data centre industry to grow significantly over the next ten to fifteen years and that it will remain a major energy consumer.

On the BSE and NSE, the NCDs will be listed and traded in dematerialized form, and the company will offer an effective yield of up to 9.90% annually. Investor allocation will be based on a first-come, first-served basis.

NCDs Tenure:

The primary purpose of the proceeds, whether fully or partially, will be the prepayment or repayment of the current borrowing by the company. The debentures will be offered in eight series with quarterly, cumulative, and annual interest payment options. They will have tenures of 24, 36, and 60 months.

Share price of Adani Enterprises Ltd.:
Due to the overpriced bond subscription on the first day of the bid, Adani Enterprises Ltd.’s stock is currently trading at Rs. 3,016.60 per share, up more than 1% intraday today at Rs. 3029 per share.

Conclusion: On the first day of its listing in NSE and BSE, one of the most popular and heavily subscribed NCDs—which is 1.8 times higher—filled; I anticipate a huge opening.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.