India’s Adani Enterprises eyes first-ever public debt issue in coming weeks, sources say

By Bhakti Tambe

MUMBAI (Reuters) – India’s Adani Enterprises, the flagship firm of Adani Group, plans to launch its first-ever public issue of bonds in the coming weeks to raise up to 6 billion rupees ($71.7 million), two sources aware of the development said on Tuesday.

“The company has already filed a draft prospectus with Securities Exchange Board of Indian (SEBI). So the issue should open in mid-August after the final approval,” one of the sources said on condition of anonymity as the person is not authorised to talk to media.

Adani Enterprises had decided not to proceed with a debut retail bond offering of up to 10 billion rupees last year after U.S.-based short-seller Hindenburg Research accused the group of improper use of offshore tax havens and stock manipulation.

Adani Group denied Hindenburg’s allegations, but shares of its group companies lost more than $100 billion in value before recovering in late 2023.

Last week, the company informed the exchanges that it had filed a draft prospectus with the market regulator, and the public issue will have a base size and a greenshoe option of 3 billion rupees each.

CareEdge has assigned an A+ rating to Adani Enterprises’ bonds.

Trust Investment Advisors, AK Capital Services and Nuvama Wealth Management are the lead arrangers for the issue, the sources said.

Adani Group and the lead arrangers did not immediately respond to Reuters’ email seeking comment.

Since the Hindenburg report in January 2023, Adani Group companies have raised more than $670 million through listed rupee bonds and one dollar bond.

On Monday, Reuters reported that Adani Energy Solutions is likely to launch a share sale this week to raise more than $600 million.

The sale of existing shares will be Adani Group’s first fundraise from equity markets after a $2.5 billion share sale was scrapped in February 2023.

($1 = 83.7250 Indian rupees)