Adani Enterprises launches ₹800 crore NCD issue with interest rates up to 9.90% and green shoe option. Check details

NCD Issue: Adani Enterprises Limited has launched a public issue of secured, rated, listed, redeemable, non-convertible debentures (NCDs) valued at ₹1,000 each, aiming to raise ₹400 crore initially. The company has also included a green shoe option, allowing for an oversubscription of up to ₹400 crore, bringing the total potential issue size to ₹800 crore, as per an exchange filing.

Interest rates on NCDs

Short-term options:

24-month NCDs offering an annual interest rate of 9.25 per cent.

Medium-term options:

36-month NCDs with interest rates ranging from 9.32 per cent to 9.65 per cent, depending on the payment frequency.

Long-term options:

60-month NCDs providing interest rates between 9.56 per cent and 9.90 per cent.

The interest rates for these NCDs vary, with the maximum rate set at 9.90 per cent per annum.

Adani Enterprises' share price was down 0.60 per cent to ₹3048.50 on August 28, at 9:41 AM, on the BSE. The company has a market capitalisation of ₹3,47,466.64 crore.

The company confirmed that its Board of Directors approved the public issue at a meeting on August 4, 2022. On August 27, 2024, the Management Committee further ratified and adopted the prospectus for the issuance. The debentures will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), with BSE designated as the primary exchange.

The issuance will open for subscription on September 4, 2024, and close on September 17, 2024. Investors can opt for debentures with tenures ranging from 24 to 60 months, depending on their preferences. As per the filing, interest payments will be made on an annual, quarterly, or cumulative basis based on the specific series of NCDs chosen.

Adani Enterprises has assured investors that the principal and interest payments will be secured by a first-ranking pari-passu charge on specific assets, ensuring a security cover of at least 110 per cent of the outstanding amounts. Additionally, in cases of any delay in payment, the company has committed to paying an additional interest rate of 2 per cent per annum, as stipulated by law, the company said in the filing.