Adani Enterprises to raise ₹1,000cr via NCDs
What's the story
Adani Enterprises Limited (AEL), the flagship company of billionaire Gautam Adani's group, has announced a non-convertible debenture (NCD) issue worth ₹1,000 crore. The offer comes with an attractive yield of up to 9.3% per annum. The issue will open on July 9 and close on July 22, according to a company statement. This is the second public offering of secured and rated redeemable NCDs by Adani Enterprises.
Market commitment
AEL's 2nd public NCD issuance
Jugeshinder 'Robbie' Singh, Group CFO of Adani Group, said the second public NCD issuance by AEL shows their commitment to inclusive capital market growth and retail participation in long-term infrastructure development.He added this new issue comes after a strong market response to AEL's debut NCD offering. The first issue saw capital appreciation for debt investors after a rating upgrade within six months, reflecting the group's consistent delivery and financial robustness.
Infrastructure impact
Role as an incubator for India's key energy platforms
Singh further emphasized AEL's role as an incubator for India's key energy and transport utility platforms. These include Adani Ports & SEZ, Adani Energy Solutions, Adani Power, and Adani Green Energy. He said AEL is scaling the next generation of infrastructure businesses across airports, roads, data centers, and the green hydrogen ecosystem. Each of these sectors could play a transformative role in India's journey toward a $5 trillion economy.
Subscription success
AEL's 1st NCD issuance
AEL's first NCD issuance of ₹800 crore, launched in September last year, was fully subscribed on the first day. Notably, AEL is the only corporation (outside of non-banking financial companies) to offer a listed debt product for retail investors. This move gives individual and non-institutional investors a rare chance to be part of India's infrastructure growth story.
Investment opportunity
NCD issue comes at perfect time for investors
The AEL NCD issue comes at a perfect time for investors looking for stable, fixed-income avenues. With recent rate cuts and the start of a softer interest rate cycle, this public issue offers competitive yields compared to similarly rated NCDs and fixed deposits (FDs). The proposed NCDs have been rated "Care AA-; Stable" and "[ICRA]AA- (Stable)" by CARE Ratings and ICRA, respectively.
NCD details
Issue size, proceeds, and minimum application
The base size issue is ₹500 crore, with an option to retain over-subscription up to an additional ₹500 crore (greenshoe option) aggregating up to ₹1,000 crore. The NCDs have a face value of ₹1,000 each and each application will be for a minimum of 10 NCDs and in multiples of 1 NCD thereafter. At least 75% of the proceeds from the issuance will be utilized toward prepayment or repayment of existing indebtedness availed by the company.