Adani Enterprises Launches First Public Issuance of Non-Convertible Debentures
Adani Enterprises (AEL) has announced the launch of its first public issuance of secured, rated, listed redeemable non-convertible debentures (NCDs). These NCDs have been rated ‘CARE A+; Positive’ by CARE Ratings Limited, indicating a low credit risk and an adequate degree of safety regarding timely servicing of financial obligations.
The offering will include up to 80,00,000 NCDs, each with a face value of Rs 1,000. The base size of the issue is Rs 400 crore, with an option to retain oversubscription up to an additional Rs 400 crore, aggregating up to Rs 800 crore. The issue will open on September 4, 2024, and close on September 17, 2024, with an option for early closure or extension.
The minimum application size for each application for NCDs is Rs 10,000 across all series collectively, and in multiples of Rs 1,000 thereafter. The proceeds from the issue will be used primarily for the prepayment or repayment of existing debt (at least 75%) and for general corporate purposes (up to 25%) in compliance with SEBI NCS Regulations.
Trust Investment Advisors Private Limited, A.K. Capital Services Limited, and Nuvama Wealth Management Limited are the Lead Managers to the issue. The NCDs are available in tenors of 24 months, 36 months, and 60 months with quarterly, cumulative, and annual interest payment options across eight series.
Doubts Revealed
Adani Enterprises -: Adani Enterprises is a big company in India that does many different types of business, like making electricity and building things.
Public Issuance -: Public issuance means that the company is offering something, like shares or bonds, to the general public to buy.
Non-Convertible Debentures (NCDs) -: Non-Convertible Debentures are a type of loan that people can buy from a company. They can’t be changed into shares of the company.
CARE Ratings -: CARE Ratings is a company that checks how safe it is to invest in different companies and gives them a score.
Rs 400 crore -: Rs 400 crore is a way to say 4 billion rupees, which is a lot of money.
Oversubscription -: Oversubscription means that more people want to buy the NCDs than the company planned to sell, so they might sell more.
Tenors -: Tenors are the lengths of time for which the NCDs will last, like 24, 36, or 60 months.
Interest Payment Options -: Interest payment options are different ways the company can pay you money for lending them your money.