Adani Enterprises’ maiden retail bond issue fully subscribed on first day

Adani is now testing retail bond market

MUMBAI: Adani Enterprises’ inaugural retail bond issue was fully subscribed at its launch on Wednesday, according to data from stock exchanges. This is a rare event in the market.

Following accusations by US short-seller Hindenburg Research in January 2023—alleging improper use of offshore tax havens and stock manipulation—the Indian conglomerate had previously raised funds from institutional investors.

The allegations, which Adani has consistently denied, led to a $150 billion drop in the value of its shares. However, with the group’s share prices largely recovered, Adani is now testing retail demand.

Aimed to raise up to Rs800 crore ($95.32 million)

Adani Enterprises aimed to raise up to Rs800 crore ($95.32 million) through this bond issue, including a greenshoe option of Rs400 crore. By 5:00 p.m. local time (11:30 GMT), bids had reached Rs 717 crore.

Retail bond sales are uncommon, and Adani is the first non-financial company to issue them since 2016.

Earlier this year, Adani Energy Solutions raised $1 billion through an institutional share sale, and Adani Enterprises is also planning a $1 billion share offering, media reported.

According to one banker involved in the issue, who preferred to remain anonymous, the demand was in line with expectations and came from both retail investors and high-net-worth individuals, who were the primary target audience. The bond issue, rated A+ by CareEdge, is set to close on September 17.

Adani Enterprises, along with its bankers and online platforms, has promoted the bond through webinars and social media. The lead arrangers—Trust Investment Advisors, AK Capital Services, and Nuvama Wealth Management—did not respond to requests for comment.

The bonds offer coupons ranging from 9.25 per cent to 9.9 per cent, based on maturities of 24 to 60 months. This compares to yields of 10 per cent to 11 per cent offered by similarly rated non-banking finance firms.