Subscription for the first retail NCD (non-convertible debenture) of Adani Enterprises Limited (AEL), the flagship company of Adani Group, has opened for general investors from Wednesday. AEL plans to raise Rs 800 crore through this retail bond. Adani Enterprises will issue 80 lakh non-convertible debentures with a face value of Rs 1,000 under this issue. The base size of this issue is Rs 400 crore. It also has a green shoe option or over subscription of Rs 400 crore. In this way, the total retail NCD issue size of Adani Group’s flagship company is Rs 800 crore.
Annual interest of 9.90 percent
AEL’s retail NCD has received a positive rating of A+ from credit rating agency CARE. The company will pay investors an interest of 9.90 percent per annum on this bond. The maturity period of NCD is 24 months, 36 months and 60 months. Investors have been given three options quarterly, lump sum and yearly to receive interest in its eight series. The last date to invest in these NCDs is 17 September.
Minimum Rs 10,000 will have to be invested
One lot of AEL’s retail NCD is of 10 units. Therefore, at least Rs 10,000 will have to be invested to bid for the issue. Its allotment will be done on ‘first come, first serve’ basis. AEL is India’s largest business incubator in terms of market capitalization. The company’s portfolio includes emerging businesses like solar and wind manufacturing, road and airport.
The bond will be listed on the stock exchange
According to the information given by the company, these NCDs will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Of the amount raised through this issue, 75 percent will be used by the company to repay debt and 25 percent will be used for general corporate expenses. In the first quarter of FY 2024-25, Adani Portfolio’s profit increased by 50.1 percent year-on-year to Rs 10,279 crore. At the same time, EBITDA has increased by 32.9 percent year-on-year to Rs 22,570 crore during this period.
