New Delhi, Jan 6 (.) Adani Enterprises’ Rs 1,000 crore public issue of non-convertible debentures (NCDs) was fully subscribed within 45 minutes of opening on Tuesday. The base issue of Rs 500 crore was subscribed in just 10 minutes.
Each application was for a minimum of 10 NCDs and in multiples of 1 NCD thereafter. The minimum application size was worth Rs 10,000.
The base size issue was Rs 500 crore, with an option to retain over-subscription up to an additional Rs 500 crore (Green Shoe Option) aggregating up to Rs 1,000 crore (Issue or Issue Size), according to a company statement. A “Green Shoe” or over-allotment option is a provision in a public offering which allows underwriters to sell more shares than initially planned to meet high demand.
According to the company’s subscription data, the demand was dominated by non-institutional investors, who accounted for bids worth Rs 651.45 crore by mid-morning.
High net-worth individuals subscribed to Rs 71.90 crore, while retail investors placed bids worth Rs 87.15 crore.
At least 75 per cent of the proceeds from the issuance will be utilized towards the prepayment or repayment or payment, in full or in part, of the indebtedness availed by the Company; and/or any interest on such indebtedness and the balance (up to maximum of 25 per cent) for general corporate purposes, the company had said.
Nuvama Wealth Management Limited, Trust Investment Advisors Private Limited and Tipsons Consultancy Services Private Limited are the Lead Managers to the Issue.
The NCDs are available in tenors of 24 months, 36 months and 60 months with quarterly, annual and cumulative interest payment options across eight series. . VK SAS