In a rare offering on the market, Adani Enterprises’ first retail bond was fully subscribed at its introduction on Wednesday, according to statistics from the local Indian stock exchange.
The new bond is the first attempt at testing retail demand, even though the Indian business has solicited money from institutional investors since US short-seller Hindenburg Research accused it of improperly using offshore tax havens and manipulating stocks in January 2023.
The claims, which Adani has categorically refuted, caused a $150 billion market crash in the group’s stock.
Adani has returned to the capital markets as a result of the group share prices recovering from most of the losses. Comment requests were not answered by Adani Enterprises.
Adani Enterprises has received bids totaling Rs 717 crore as of 5:00 p.m. local time (1130 GMT), according to the data. The company intends to raise up to Rs 800 crore ($95.32 million) via the bond offering, including a greenshoe option of Rs 400 crore.
Adani is the first non-financial business to offer such retail bonds since 2016. These sales are uncommon.
Adani Energy Solutions sold institutional shares in July to raise $1 billion. According to Reuters, Adani Enterprises also intends to sell $1 billion worth of shares.
A banker who wished to remain anonymous stated, “The demand is in line with what we was expecting, and has come from retail investors as well as high net-worth individuals who were the primary target audience.”
CareEdge rates the issue an A+. It closes on September 17.
Adani Enterprises has promoted the issuance through webinars and social media, in addition to bankers and online platforms that retail investors subscribe to these bonds through.
Requests for comments from its primary arrangers, Trust Investment Advisors, AK Capital Services, and Nuvama Wealth Management, went unanswered.
The bonds have coupon rates ranging from 9.25 percent to 9.9 percent for maturities of 24 to 60 months. In contrast, rates for similarly rated non-banking finance companies range from 10% to 11%.
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