Gautam Adani
Adani Enterprises Limited on Wednesday launched a non-convertible debenture (NCD) issue of Rs 1,000 crore, and it was completely subscribed in just three hours. According to the data from the stock exchange, there was tremendous enthusiasm among investors regarding this issue. The issue was opened on Wednesday and was to be open till 22 July, but due to being completely subscribed so soon, it has become likely to closure.
Annual interest will be available up to 9.3 percent
The flagship company of Adani Group promised up to 9.3 per cent annual interest in this issue. The special thing is that the entire participation in this issue came from non-institutional investors, ie retail investors, high net worth individuals (HNIS) and corporates. According to data from the stock exchange, more than Rs 1,400 crore was received for this issue by 3:30 pm. This issue was on the first-cum, first-servant basis, and investors participated extensively in it.
Second public NCD issue, more enthusiasm than before
This is the second public NCD issue of Adani Enterprises. In September last year, the company launched a NCD issue of Rs 800 crore, which was 90 percent subscribed on the first day. The issue of this time was subscribed much faster than that, which reflects the growing trust of investors. One of the lead managers said, “The special thing about this issue is that the entire participation in it has come from non-institutional investors. Adani brand is echoing firmly between Retail Public. Retail, HNI and corporate investors participated enthusiastically, which shows their confidence in the company’s credit profiles and future prospects.”
NCD issue’s base size was Rs 500 crore
The base size of this NCD issue was Rs 500 crore, with a provision to retain the over-subscription (Greenshu option) up to Rs 500 crore, leading to the total issue size to Rs 1,000 crore. The face value of each NCD is Rs 1,000. Investors had to apply at least 10 NCDs, ie with a minimum application of Rs 10,000, and after that they could apply to 1 NCD multiple.
The company said in a statement issued on 6 July, “At least 75 percent of the amount received from this issue will be used for the company’s current debt completely or partially or for preparation. The remaining 25 percent of the remaining 25 percent will be used for general corporate purposes.” This step is being considered an important step towards further strengthening the financial situation of the company.
There are many options in this NCD issue
In this NCD issue, investors have been given many options with 24 months, 36 months and 60 months tanner. The quarter, annual and cumulative options are available for interest payment, which are distributed in a total of eight series. This flexibility was attractive to investors, which further enhanced the popularity of the issue.
The lead managers of this issue are Nuwama Wealth Management Limited, Trust Investment Advisors Private Limited and Tipsons Consultancy Services Private Limited. Market experts believe that the success of this issue reflects the strong brand value of Adani Group and the increasing confidence among investors.