Adani Enterprises’ First Retail Bond Gets Full Subscription

Adani Enterprises has managed to secure a full subscription for its first retail bond launched on Wednesday. As Adani is the first non-financial company to issue such a retail bond since 2016, the response has been good from the retail participants for the rare issue.

The group is seeking to raise up to Rs 800 crore through the bond sale, which includes a greenshoe option of Rs 400 crore. The group had received bids worth Rs 717 crore as of 5 PM, as per the data. As far as the bonds are concerned, they offer coupons which range between 9.25 per cent and 9.9 per cent based on maturities ranging between two to five years.

“Demand for Adani Enterprises maiden Bond Public Issue has been good from retail participants. This is the first non-financial public issuance this financial year and being a well-recognised household, name makes it attractive as per client feedback. There is also an option for 3y and 5y applications and is a good entry point to get some duration as we are likely to see interest rates go down in the next few months,” stated Vishal Goenka, Co-founder of IndiaBonds.

As the company has raised money through the route of institutional investors since Hindenburg Research’s accusations in January 2023, this new bond has increased importance as it is the company’s first test of retail demand, as reported by Reuters.

The issue which has been rated A+ the ratings agency CareEdge closes on 17 September. The group along with bankers and online platforms have done the marketing for the issue through social media and webinars as well. Earlier, In July, Adani Energy Solutions raised around USD One billion through the institutional share sale. As per Reuters, Adani Enterprises is also planning for USD one billion share sale.