• Source:JND
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To diversify its funding base after last year's severe short seller attack, Adani Enterprises Ltd. has launched its first bond issuance aimed at individual investors, which opened for subscription on Wednesday.

According to its prospectus, Adani Enterprises plans to raise up to 800 crore rupees through bond issuance, Bloomberg reported. 

The bond issue, with a base size and a greenshoe option of Rs 400 crore each, is open for subscription from September 4 to September 17, according to the company's exchange filing. 

The company plans to offer bonds with various maturities, including two-year, three-year, and five-year terms, but has not specified the intended use of the funds. Of the total amount, 60 per cent is allocated for high-net-worth individuals and retail investors, 30 per cent for non-institutional investors like corporations, and the remaining 10 per cent for institutional buyers. 

Annual Interest Rates Of Bonds

The annual interest rates for these bonds are set at 9.25 per cent for the two-year bonds, 9.65 per cent for the three-year bonds, and 9.90 per cent for the five-year bonds.

This bond sale is part of the conglomerate’s efforts to secure funds through various channels. A strong response to the public offering would indicate investor confidence and underscore the group’s recovery after its shares and bonds were significantly impacted by Hindenburg Research’s report in January 2023.

Hindenburg's report was released on 10 August, just 2 days before a USD 2.5 billion public offering was issued. The report alleged that Gautam Adani’s group has been involved in “brazen stock manipulation and accounting fraud scheme over the course of decades”.