India’s two wealthiest men, Mukesh Ambani and Gautam Adani, are turning their focus to retail investors to cement their market dominance. Ambani’s Reliance Industries and Adani Enterprises are deploying distinct strategies to woo small investors, reflecting the growing significance of retail participation.
Adani Enterprises, led by Asia’s second-richest person, launched its first bond offering aimed directly at retail investors. On the first day of the sale, the retail quota was fully subscribed. This move marks a new funding path for Adani’s conglomerate, which is recovering from a short-seller attack last year and riding a wave of investor optimism.
On the other hand, Reliance Industries, under Mukesh Ambani, announced a bonus share issuance, offering shareholders an additional share for every one they already hold. This initiative increases liquidity and affordability for smaller investors, boosting the number of shares in circulation while lowering the stock price.
Ambani’s approach is seen as a sweetener for shareholders who were awaiting more significant updates on Reliance’s telecom and retail IPOs but received no specific guidance during the company’s recent annual general meeting. Meanwhile, India’s stock market has drawn millions of new investors in recent years, drawn by a bull run and shifting from traditional bank deposits.
“When Reliance grows, we reward our shareholders generously,” Ambani said during his August 29 speech, shortly after the company unveiled its first bonus issue since 2017. “When our shareholders are rewarded handsomely, Reliance grows faster and creates more value.”
Adani Enterprises continued to see strong interest on the second day of its bond sale, surpassing its target by raising 8.9 billion rupees against a goal of 8 billion. The bonds, with maturities ranging from two to five years and yields between 9.25% and 9.90%, are expected to channel a majority of the funds toward debt repayment.
Chief Financial Officer Jugeshinder Singh noted that the bond issue would enable more individuals to invest in public debt securities and gain higher returns. According to Bloomberg, Adani Group is also in discussions with global banks to raise at least $1.5 billion via dollar bond sales, primarily for its renewable energy and power transmission units. These bonds, issued under Adani Green Energy and Adani Energy Solutions, will help refinance existing debt, with sales expected to be completed by February next year.