Billionaire Gautam Adani's flagship firm plans to raise up to Rs 1,000 crore ($116.77 million) through a retail bond issue opening for public subscription next week, two sources aware of the development told Reuters on Tuesday.
Adani Enterprises will sell two-year, three-year and five-year bonds through the issue, which will remain open for subscription from July 9 to July 22, the sources added.
The company will pay an annual coupon of 8.95% on its two-year bonds, 9.15% on three-year bonds and 9.30% on five-year bonds, and will also have an option to defer interest payment to maturity, the sources said.
For investors opting for quarterly payouts, the coupon will be 8.85% on three-year and 9.00% on five-year notes, they added.
Adani Enterprises did not reply to a Reuters request for comment.
This marks Adani Enterprises' second retail bond sale within a year. In September 2024, it raised Rs 800 crore via its debut public issue, offering two, three, and five-year bonds at coupons of 9.25%, 9.65%, and 9.90% respectively, indicating a 30-60 basis point drop in rates across tenors this time.
The proposed issue, rated AA- by Icra and Care Ratings, includes a greenshoe option of Rs 500 crore. Nuvama Wealth Management, Trust Investment Advisors and Tip Sons Consultancy Services will be the lead managers for the bond sale, the company said.
Last month, the company raised $750 million from a group of international banks. In November, U.S. authorities indicted Gautam Adani and his nephew, Sagar Adani, over alleged bribery and misleading of investors in connection with U.S. fundraising.
Gautam Adani denied any wrongdoing last week, telling shareholders that no individual from the group had been charged under the U.S. Foreign Corrupt Practices Act.
Adani Group and its 13 offshore investors have also been facing an investigation by the Securities and Exchange Board of India (SEBI) since Hindenburg Research in 2023 alleged the group's improper use of tax havens. The group has consistently denied any wrongdoing.
($1 = 85.6375 Indian rupees)
Adani Enterprises will sell two-year, three-year and five-year bonds through the issue, which will remain open for subscription from July 9 to July 22, the sources added.
The company will pay an annual coupon of 8.95% on its two-year bonds, 9.15% on three-year bonds and 9.30% on five-year bonds, and will also have an option to defer interest payment to maturity, the sources said.
For investors opting for quarterly payouts, the coupon will be 8.85% on three-year and 9.00% on five-year notes, they added.
Adani Enterprises did not reply to a Reuters request for comment.
This marks Adani Enterprises' second retail bond sale within a year. In September 2024, it raised Rs 800 crore via its debut public issue, offering two, three, and five-year bonds at coupons of 9.25%, 9.65%, and 9.90% respectively, indicating a 30-60 basis point drop in rates across tenors this time.
The proposed issue, rated AA- by Icra and Care Ratings, includes a greenshoe option of Rs 500 crore. Nuvama Wealth Management, Trust Investment Advisors and Tip Sons Consultancy Services will be the lead managers for the bond sale, the company said.
Last month, the company raised $750 million from a group of international banks. In November, U.S. authorities indicted Gautam Adani and his nephew, Sagar Adani, over alleged bribery and misleading of investors in connection with U.S. fundraising.
Gautam Adani denied any wrongdoing last week, telling shareholders that no individual from the group had been charged under the U.S. Foreign Corrupt Practices Act.
Adani Group and its 13 offshore investors have also been facing an investigation by the Securities and Exchange Board of India (SEBI) since Hindenburg Research in 2023 alleged the group's improper use of tax havens. The group has consistently denied any wrongdoing.
($1 = 85.6375 Indian rupees)
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