Adani Enterprises' first retail bond fully subscribed: Report

Although the Indian conglomerate has previously raised funds from institutional investors following allegations by U.S. short-seller Hindenburg Research in January 2023 of improper use of offshore tax havens and stock manipulation, this new bond issuance represents its first test of retail investor interest.

Adani, which has consistently denied the allegations, saw a $150 billion decline in its companies' market value.

However, after a substantial recovery in share prices, the group has decided to return to the capital markets.

The company aims to raise Rs 800 crore ($95.32 million) through the bond sale, including a greenshoe option of Rs 400 crore, and had received bids worth Rs 717 crore by 5:00 p.m. local time (1130 GMT), according to the data.

Retail bond sales are uncommon, 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," one of the bankers involved was quoted as saying by Reuters.

The bond issue, rated A+ by CareEdge, is set to close on September 17.

Adani Enterprises, along with bankers and online platforms that retail investors use to subscribe to these bonds, have promoted the offering through webinars and social media campaigns.

The lead arrangers—Trust Investment Advisors, AK Capital Services, and Nuvama Wealth Management—did not respond to requests for comment, the report said.

The bonds offer interest rates ranging from 9.25% to 9.9%, depending on maturities of 24 to 60 months.

In comparison, similarly rated non-banking finance companies typically offer yields between 10% and 11%.