Adani Enterprises raised Rs 1,250 crore through a local-currency bond sale on Thursday, the company said in a stock exchange filing. This is the first time that the Adani Group has tapped into the local corporate bond market since Hindenburg Research came out with its scathing report in January.
Billionaire Gautam Adani’s flagship company said in its exchange filing, “We would like to inform that the company has raised Rs 1,250 crore today… From allocation of 1,25,000 secured, unrated, unlisted, redeemable, non-convertible debentures (NCDs). The face value of each is Rs 1 lakh depending on the private placement. ”
While the company has not disclosed the interest rate, a PTI report cited data from the National Securities Depository Ltd to say that the three-year bond carries an annual coupon of 10 per cent.
According to the report, Adani Enterprises last raised funds in September 2022 by issuing bonds at 8.40 per cent returns for 17 months. That funding was 140 basis points higher than current government bond yields.
The current bond offering has a premium of about 300 basis points on comparable government bond yields, the report said. However, unlike government bonds, which pay half-yearly interest, Adani bonds pay interest annually.
Citing NSDL data, the report also said Adani Enterprises has raised fresh debt by pledging 21.4 per cent shares of Adani Road Transport. The company has pledged 1.95 per cent shares of Adani Road Transport during the September 2022 bond issue.
In January, American short-seller Hindenburg Research published a scandalous report against the Adani Group alleging stock manipulation and accounting fraud. Following the report, Adani Group companies suffered a market crash, losing around $145 billion from the group’s market value at one point of time.
The Adani Group has repeatedly denied all allegations in the Hindenburg report. According to the report, Adani is now trying to make a comeback by revamping its ambitions, eliminating acquisitions, prepaying loans and borrowings, and reducing the pace of spending on new projects. One of the moves involves promoters selling shares worth Rs 11,330 crore in two tranches to GQG Partners, a leading US-based global equity investment boutique, since May.
