Adani Enterprises set to launch NCD offer and QIP this month

Adani Enterprises Ltd, led by billionaire Gautam Adani, is gearing up for two significant financial moves: its first public offer of non-convertible debentures (NCDs) and a qualified institutional placement (QIP). These steps are part of the company’s broader strategy to diversify funding and strengthen its financial position.

NCD Offering

• Launch Timeline: Adani Enterprises is expected to launch its maiden public NCD offer later this month, possibly as soon as next week.
• Fundraising Goal: The company aims to raise Rs 600 crore through this NCD offer, which will include a base size of Rs 300 crore and a green shoe option of Rs 300 crore.
• Purpose: The funds raised will be used primarily to repay existing loans.

QIP Plans

• Expected Launch: The company plans to roll out a QIP in the first half of September, pending market conditions and investor demand.
• Capital Raise: Adani Enterprises is looking to raise between $1.5 billion and $2 billion through this QIP.
• Past Success: The recent QIP by Adani Energy Solutions, a group company, raised $1 billion with significant demand, indicating strong interest from institutional investors.

Financial and Market Context

• Debt: As of June 30, Adani Enterprises reported a net debt of Rs 42,753 crore.
• Previous Approval: The company’s board approved a Rs 16,600 crore fundraising plan through QIP on May 28.

Hindenburg Controversy

• Recent Allegations: The fundraising plans come amid fresh allegations from short-seller Hindenburg Research, which accused SEBI Chairperson Madhabi Puri Buch and her husband of having ties to offshore entities allegedly involved in financial misconduct related to the Adani group.
• Official Responses: The Buchs and Adani Group have strongly denied these allegations, calling them baseless and part of a “red herring” strategy to discredit the company.

Market Impact

• Investor Interest: The QIP for Adani Energy Solutions saw substantial interest from global and domestic investors, reflecting a positive outlook on Adani’s financial strategies.