MUMBAI: Indian billionaire Gautam Adani’s flagship firm saw strong demand for its second public bond issue in less than a year, with the offering oversubscribed on launch day, three merchant bankers said on Wednesday.
Adani Enterprises plans to raise up to 10 billion rupees ($116.7 million) through the sale of two-, three- and five-year bonds.
The issue opened for subscription earlier in the day and received bids worth 15 billion rupees as of 5 p.m. IST, the bankers said.
It will now close on Friday, ahead of its earlier schedule of July 22, Adani Enterprises said in a public notice.
“We think the company will tap this market on a regular basis considering the strong response,” one of the bankers said.
They are directly involved in the issue and requested anonymity as they are not authorised to speak to the media.
Adani Enterprises to sell 2-5 year debt at public bond sale next week
Adani Enterprises will pay an annual coupon of between 8.95% and 9.30%, they said.
Corporates led demand for the issue, followed by high net-worth individuals and retail investors, they added.
This is India’s biggest public issue in 14 months and comes after a subdued first quarter where firms were able to raise only about 15 billion rupees.
Nuvama Wealth Management, Trust Investment Advisors and Tip Sons Consultancy Services are the lead managers for the issue.
Adani Enterprises did not immediately respond to a Reuters request for comment. Last September, the company raised 8 billion rupees in its debut public issue, offering yields 30-60 basis points higher across tenors.
Adani Enterprises was able to garner over 7 billion rupees in bids on the first day until 5:00 p.m. IST last year.
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