To earn 400 crore initially, Adani Enterprises Limited has started a public offering of secured, rated, listed, redeemable, non-convertible debentures (NCDs) with a face value of 1,000 each. According to an exchange filing, the company has also included a green shoe option that permits an oversubscription of up to ₹400 crore, increasing the maximum possible offering size to ₹800 crore.
Interest rates on NCDs
Short-term options:
NCDs with a 24-month term have a 9.25% annual interest rate.
Medium-term options:
36-month NCDs with interest rates that vary based on how frequently payments are made, from 9.32% to 9.65%.
Long-term options:
NCDs for 60 months with interest rates ranging from 9.56% to 9.90%.
These NCDs have variable interest rates, with a maximum rate of 9.90% annually.
At 9:41 AM on August 28, Adani Enterprises’ share price on the BSE was down 0.60 per cent to ₹3048.50. The market valuation of the company is ₹3,47,466.64 crore.
At a meeting on August 4, 2022, the company confirmed that the public offering was approved by its Board of Directors. The prospectus for the issue was further approved and ratified by the Management Committee on August 27, 2024. The Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) will list the debentures, with the BSE acting as the major exchange.
The subscription period for the issuance will begin on September 4, 2024, and end on September 17, 2024. Debentures with terms varying from 24 to 60 months are available to investors, based on their individual needs. Interest payments will be made annually, quarterly, or cumulatively by the filing, depending on the particular series of NCDs selected.
Investors can rest easy knowing that Adani Enterprises will guarantee a security cover of at least 110% of the outstanding amounts by securing the principle and interest payments with a first-ranking pari-passu charge on certain assets. The company stated in the filing that it has also agreed to pay an additional two per cent annual interest rate in the event of any payment delay, as required by law.
