Adani Enterprises Launches First-Ever Bond Sale for Individual Investors Amid Recovery from Hindenburg Setback

Adani Enterprises Ltd., the main company in Gautam Adani’s business group, has started its first bond sale aimed at individual investors. The bond sale opened for subscription on Wednesday as the company looks to diversify its sources of funding after facing a major setback last year due to a negative report from short-seller Hindenburg Research.

The company plans to raise up to ₹8 billion ($95.3 million) through this bond issuance. Of this, 60% is reserved for high net-worth individuals and retail investors, 30% is set aside for non-institutional investors like corporations, and the remaining 10% is for institutional buyers.

This bond sale is part of the conglomerate’s broader effort to raise funds through various channels. A strong response from investors would show confidence in the group, especially after its stocks and bonds took a hit following Hindenburg’s allegations of corporate wrongdoing in January 2023—a claim the Adani group has consistently denied.

Adani Enterprises had initially planned a public bond issuance of ₹10 billion in January last year but canceled it after the Hindenburg report. Since then, the group has resumed its growth plans, including new fundraising efforts for its main company and other ventures. The group recently announced that it has enough cash to cover over 30 months of debt payments, aiming to reassure investors about its financial stability.

The bonds offered by Adani Enterprises have terms of two, three, and five years, with interest rates ranging from 9.25% to 9.90%. Most of the money raised will be used to repay the company’s debt, while the rest will go towards general business expenses. The public issue, managed by Trust Investment Advisors Pvt., AK Capital Services, and Nuvama Wealth Management, is set to close on September 17.