Adani Enterprises (AEL) on Thursday announced the launch of its maiden public issuance of secured, rated, listed redeemable and non-convertible debentures.
AEL is the flagship company of the Adani Group and one of India’s largest business incubators in terms of market capitalisation.
The non-convertible debentures (NCDs) that are intended to be issued under the Issue have been rated by CARE Ratings Limited as “CARE A+; Positive (Single A Plus; Outlook: Positive).” Securities with these ratings are considered to have an adequate level of safety regarding the timely servicing of financial obligations. These securities have low credit risk.
Addressing a press conference in Ahmedabad, Gujarat, Group’s Chief Financial Officer (CFO) Jugeshinder Robbie Singh said, “AEL has expanded in four core industry sectors, namely energy and utility, transportation and logistics, consumer and primary industry. In numbers, there is five to seven times growth in the energy sector. We have a consistent approach to growth. We remain well in credit ratings. Energy is majorly imported. However, we are aligned with the government’s ‘Atmanirbhar Bharat’ concept and making it indigenous.”
Up to 80,00,000 non-convertible debentures (also known as “NCDs” or “Debentures”), each having a face value of Rs 1,000, will be included as part of AEL’s offering. The base size issue is Rs 400 crore, with an option to retain over-subscription up to an additional Rs 400 crore (“Green Shoe Option”) aggregating up to Rs 800 crore (“Issue” or “Issue Size”).
The Issue will begin on September 4, 2024 and conclude on September 17, 2024, with the option of early closure or extension, the company further stated.
The company said that the minimum application size for each NCD application will be Rs 10,000 for all series combined, followed by multiples of Rs 1,000 from there on.
Emphasising the logistics sector, Singh said, “Businesses rely heavily on logistics in today’s economic landscape. Taking India as whole, 13 per cent of the GDP is connected to this sector.”
In compliance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021, as amended from time to time, the proceeds from the Issue will be used primarily towards the prepayment or repayment, in full or in part, of the existing indebtedness availed by the firm (at least 75 per cent) and general corporate purposes (up to 25 per cent).
The firm further said that the Lead Managers of the Issue are A.K. Capital Services Limited, Nuvama Wealth Management Limited and Trust Investment Advisors Private Limited.
Eight series of NCDs with quarterly, cumulative and annual interest payment choices are available with tenors of 24 months, 36 months and 60 months.
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