New Delhi, July 9 Adani Enterprises Limited's (AEL) second public issuance of secured, rated and listed redeemable, non-convertible debentures (NCD) worth Rs 1,000 crore was fully subscribed within three hours of opening on Wednesday.
The bond issue received bids worth over Rs 1,400 crore by 15.30 hours, the stock exchange data showed.
The offering was on a first-come, first-served basis, which saw participation entirely from the non-institutional segment, including retail investors, high net worth individuals (HNIs) and corporates.
The issue, which was to close on July 22, is likely to see early closure due to the issue being fully subscribed.
According to market experts, what sets this bond issue apart is the strong participation from the non-institutional segment, retail HNIs and corporate investors as the company's fundamentals and credit profile remain robust.
The base size issue is Rs 500 crore, with an option to retain over-subscription up to an additional Rs 500 crore (Green Shoe Option), aggregating up to Rs 1,000 crore, according to the flagship company of the Adani Group.
The NCDs have a face value of Rs 1,000 each. Each application has a minimum of 10 NCDs and multiples of 1 NCD thereafter. The minimum application size is Rs 10,000.
The NCDs offer competitive yields compared to similarly rated NCDs and fixed deposits and are proposed to be listed on the BSE and the NSE. The proposed NCDs have been rated "Care AA-; Stable" and "(ICRA) AA- (Stable)", according to the company.
AEL's first NCD issuance of Rs 800 crore, launched in September last year, was fully subscribed on the first day.
At least 75 per cent of the proceeds from the issuance will be utilised towards the prepayment or repayment, in full or in part, of the existing indebtedness availed by the company, and the balance (up to a maximum of 25 per cent) for general corporate purposes.
The NCDs are available in tenors of 24 months, 36 months, and 60 months with quarterly, annual and cumulative interest payment options across eight series, said the company.
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