Adani Enterprises Limited is seeking to earn ₹400 crore through the public offering of secured, graded, listed, convertible, non-convertible debentures (NCDs) with a face value of ₹1,000 apiece. As per an exchange filing, the company has incorporated a green shoe option that permits an oversubscription of up to ₹400 crore, hence increasing the total potential issue size to ₹800 crore.
Interest Rates
Long Term
Interest rates on sixty month NCDs range from 9.56% to 9.90%. The maximum interest rate on these NCDs is 9.90% annually, although the rates fluctuate.
Medium Term
36 month NCDs with interest rates that vary based on how frequently payments are made, from 9.32% to 9.65%.
Short Term
NCDs with a 24 month term that have a 9.25% annual interest rate.
Share Price Of Adani Enterprises
On August 28, at 9:41 AM, the share price of Adani Enterprises was down 0.60 percent on the BSE to ₹3048.50. At ₹3,47,466.64 crore, the company is valued on the market. The business declared that, during a meeting on August 4, 2022, the Board of Directors had approved the public issue.
The Management Committee further approved and ratified the prospectus for the offering on August 27, 2024. The National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE) will both list the debentures, with the BSE serving as the major exchange.
Issuance For Subscription
Subscriptions for the issue will be accepted starting on September 4, 2024, and they will end on September 17, 2024. Depending on their preferences, investors can choose debentures with terms varying from 24 to 60 months. According to the filing, depending on the particular series of NCDs selected, interest payments will be done annually, quarterly, or cumulatively.
Investors have been reassured by Adani Enterprises that a first-ranking pari-passu charge on certain assets will protect the principle and interest payments, guaranteeing a security cover of at least 11% of the outstanding amounts. The company stated in the filing that it has also agreed to pay an additional two percent annual interest rate in the event of any payment delay, as required by law.
