Adani Enterprises, the flagship company of Indian billionaire Gautam Adani, is set to raise ₹10 billion (approximately $117 million) through a public sale of retail bonds. The conglomerate has filed a draft prospectus for the proposed issue with stock exchanges, marking its second foray into the retail bond market within a year.
The bond issue will include a greenshoe option of ₹5 billion, allowing the company to raise additional funds in case of oversubscription. This flexible structure is expected to attract a wide pool of investors, signaling a growing appetite for corporate debt instruments among Indian retail investors.
In September 2024, Adani Enterprises made its debut in the retail bond market by raising ₹8 billion, which was met with strong investor interest. The upcoming issuance is a continuation of the company’s strategy to diversify its funding sources and reduce reliance on traditional bank loans.
The bonds will be managed by Nuvama Wealth Management, Trust Investment Advisors, and Tip Sons Consultancy Services, who will serve as the lead managers for the sale. The involvement of established financial institutions is likely to boost investor confidence and ensure smooth execution of the offering.
Retail bonds have gained popularity in India as they offer fixed returns and are seen as a relatively stable investment option compared to equities. Adani’s move aligns with a broader trend where corporates are increasingly exploring bond markets to fund expansion plans or refinance existing debt.
Adani Enterprises, a part of the Adani Group, is engaged in a range of sectors including infrastructure, energy, logistics, and defense. The company’s ability to attract funding through public debt issuance is a reflection of its growing credibility among market participants, despite facing scrutiny in global financial circles in recent times.
The proceeds from the bond sale are expected to support the company’s ongoing projects and general corporate purposes, underscoring its ambitions to scale operations and sustain its growth trajectory in India’s rapidly evolving economic landscape.
