Adani Enterprises' 1st Retail Bond Fully Subscribed

Adani Enterprises' first retail bond was fully subscribed at its launch on Wednesday, stock exchange data showed, in a rare issue on the market.

While the group has raised money from institutional investors since allegations made by US short-seller Hindenburg Research, which Adani Group has repeatedly denied, the new bond is the first test of retail demand.

Group share prices have recovered since much of the losses, prompting Adani to return to the capital markets. Adani Enterprises did not respond to requests for comment.

Adani Enterprises plans to raise up to 8 billion rupees ($95.32 million) via the bond sale, including a greenshoe option of 4 billion rupees, and had received bids worth 7.17 billion rupees as of 5:00 p.m. local time (1130 GMT), the data showed.

Such retail bond sales are rare and Adani is the first non-financial company to issue them since 2016.

In July, Adani Energy Solutions raised $1 billion through an institutional share sale. Adani Enterprises is also planning a $1 billion share sale, Reuters reported.

"The demand is in line with what we was expected, and has come from retail investors as well as high net-worth individuals which were the primary target audience," said one of the bankers involved, who declined to be named.

The issue, rated A+ by CareEdge, closes on Sept. 17.

Adani Enterprises as well as bankers and online platforms, through whom retail investors subscribe to these bonds, have marketed the issue through webinars and social media.

Its lead arrangers Trust Investment Advisors, AK Capital Services and Nuvama Wealth Management did not respond to requests for comment.

The bonds offer coupons of between 9.25% and 9.9% based on maturities ranging from 24 months to 60 months. This compares to 10%-11% yields for similarly rated non-banking finance firms.

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