Adani raises Rs 1,250 cr through first bond sale since Hindenburg report
Billionaire Gautam Adani’s parent company raised Rs 1,250 crore by selling local currency bonds, the first since the US short seller’s scathing report caused a rout in the group’s securities.
In the stock exchange filing, Adani Enterprises Ltd said it has raised Rs 1,250 crore by allocating 1,25,000 unrated, unlisted, redeemable and non-convertible bonds (NCDs) of face value of Rs 1 lakh each to a private position. . Basis”.
While the company did not disclose the interest rate, data from National Securities Depository Ltd showed that the three-year bond carries an annual coupon of 10 percent.
This is the first Adani Group to tap the local corporate bond market since Hindenburg Research released its report in January.
Adani Enterprises last raised funds via an IPO in September last year with a yield of 8.40 per cent for a period of 17 months.
This fundraising was 140 basis points above the prevailing government bond yields at the time. The current issue of bonds is at a spread of approximately 300 basis points over a comparable government bond yield. But unlike government bonds where the interest is paid on semi-annual basis, Adani bonds carry annual interest.
US short seller Hindenburg Research in January released a damning report alleging accounting fraud and share price manipulation in the Adani Group, which led to a stock market crash that wiped out about $145 billion from the conglomerate’s market value at its lowest point.
The Adani Group has denied all of Hindenburg’s allegations and is planning a comeback strategy that includes reframing its ambitions, canceling acquisitions, prepaying debt to address concerns about cash flow and borrowings, and reducing the pace of spending on new projects.
Promoters in two tranches have sold shares worth Rs 11,330 crore since May to US-based global equity investment firm GQG Partners.
NSDL data showed that Adani Enterprises raised the new debt by pledging 21.4 percent of the shares of Adani Road Transport. It had pledged 1.95 percent of the shares of the Adani Land Transport Company during the September 2022 bond issue.