Adani Enterprises Secures Rs 1,250 Crore in Local Bond Sale

14 Jul 2023 , 10:27 AM

Adani Enterprises, Gautam Adani’s flagship firm, raised Rs 1,250 crore through a local-currency bond sale, marking its first issuance since a scathing report by a US short seller triggered a decline in the group’s securities.

The company disclosed that it raised funds by issuing 1,25,000 secured, unrated, unlisted, redeemable, non-convertible debentures (NCDs) with a face value of Rs 1 lakh each on a private placement basis.

While the interest rate was not specified, data from the National Securities Depository Ltd revealed that the three-year bond carried an annual coupon of 10%.

This bond issuance signifies the Adani group’s return to the local corporate bond market following the release of Hindenburg Research’s report in January.

In the previous fundraising round in September of the previous year, Adani Enterprises raised funds through the primary placement of bonds at an 8.40% yield for a duration of 17 months.

The current bond issue carries a spread of approximately 300 basis points over the comparable government bond yield, while the previous issue had a spread of 140 basis points.

Adani Group faced allegations of accounting fraud and stock price manipulation by Hindenburg Research, resulting in a significant decline in market value.

As per information, Adani Group has refuted all allegations and is implementing a comeback strategy, which includes addressing concerns about cash flows and borrowings, adjusting ambitions, pre-paying debt, and scaling back spending on new projects.

Promoters of Adani Group have sold shares worth Rs 11,330 crore to GQG Partners, a US-based global equity investment boutique.

Adani Enterprises raised the new debt by pledging 21.4% of the shares of Adani Road Transport, as per NSDL data. During the September 2022 bond issue, 1.95% of Adani Road Transport shares were pledged.

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