Adani Enterprises' first Indian retail bond fully subscribed at launch

Adani Enterprises' debut retail bond was fully subscribed on its launch day, as per data from local Indian stock exchanges on Wednesday. This marks a significant event in the market, as retail bond issues are infrequent, with Adani being the first non-financial company to make such an offering since 2016.

The Indian conglomerate has been under scrutiny since U.S. short-seller Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation in January 2023, leading to a $150 billion decline in its group companies' share prices. Despite these allegations, which Adani has consistently denied, the group's share prices have mostly recovered, allowing Adani to re-enter the capital markets.

Adani Enterprises is looking to raise up to ₹800 crore (approximately $95.32 million) through this bond sale, including a greenshoe option of ₹400 crore. As of 5:00 p.m. local time on the launch day, the bond issue had already received bids worth ₹717 crore, signaling strong demand from retail investors and high-net-worth individuals, who were the primary targets of the offering.

The bonds, which offer coupon rates between 9.25% and 9.9% depending on maturities ranging from 24 to 60 months, have garnered interest despite slightly lower yields compared to similarly rated non-banking finance firms, which offer around 10% to 11%. The bond issue, rated A+ by CareEdge, is set to close on September 17.

The successful launch of the retail bond follows Adani Energy Solutions' $1 billion institutional share sale in July. Adani Enterprises also plans to raise another $1 billion through a share sale, according to Reuters.

To market the bond issue, Adani Enterprises and its bankers utilized webinars and social media, aiming to attract retail investors. However, the company, along with its lead arrangers—Trust Investment Advisors, AK Capital Services, and Nuvama Wealth Management—declined to comment on the offering.