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Adani Enterprises Launches Third NCD Issue, Offers Up to 8.90% Annually

Adani Enterprises Limited has launched its third public issuance of secured, rated Non-Convertible Debentures (NCDs) with a base size of ₹500 crore and a green shoe option to retain oversubscription up to ₹1,000 crore. The NCDs, offering up to 8.90% per annum, open for subscription on January 6 and are available in tenors of 24, 36, and 60 months with various interest payment options. At least 75% of the proceeds are earmarked for repaying existing debt, with the balance for general corporate purposes, reinforcing the company's focus on infrastructure incubation. The issue, rated 'AA- (Stable)' by CARE and ICRA, follows the company's second NCD issuance in July, which was fully subscribed in just three hours.

Key Points: Adani Enterprises NCD Issue: Up to 8.90% p.a., Opens Jan 6

  • ₹1,000 crore issue size
  • Up to 8.90% annual interest
  • Rated 'AA-' by CARE & ICRA
  • Proceeds for debt repayment & corporate purposes
3 min read

Adani Enterprises launches third Rs 1,000 crore NCD issue, offers up to 8.90 pc per annum

Adani Enterprises launches a ₹1,000 crore NCD issue with up to 8.90% annual returns. Rated 'AA-', it opens Jan 6. Learn key details & investment terms.

"This third NCD issuance marks another step in our journey to broaden access to India's capital markets... - Jugeshinder 'Robbie' Singh, Adani Group CFO"

Ahmedabad, Jan 2

Adani Enterprises Limited, the flagship company of the Adani Group, on Friday announced the launch of its third public issuance of secured, rated, listed, redeemable, non-convertible debentures of Rs 1,000 crore, offering up to 8.90 per cent per annum.

The issue will open on January 6 and close on January 19, with an option of early closure or extension. The NCDs have a face value of Rs 1,000 each.

Each application will be for a minimum of 10 NCDs and in multiples of 1 NCD thereafter. The minimum application size would be Rs 10,000, said AEL, India's largest listed business incubator in terms of market capitalisation.

The base size issue is Rs 500 crore, with an option to retain over-subscription up to an additional Rs 500 crore (green shoe option) aggregating up to Rs 1,000 crore (issue size), said the company.

"This third NCD issuance marks another step in our journey to broaden access to India's capital markets and give retail investors a stake in long-term infrastructure growth. The strong response to our previous offerings reinforces trust in our strategy and financial discipline, and we aim to build on that momentum," Adani Group's Group CFO Jugeshinder 'Robbie' Singh said.

"As the incubator for India's next wave of infrastructure, from airports and roads to data centres and green hydrogen, AEL remains focused on creating businesses that will power India's economic transformation," Singh noted.

According to the company, at least 75 per cent of the proceeds from the issuance will be utilised towards the prepayment or repayment or payment, in full or in part, of the indebtedness availed by the company, and/or any interest on such indebtedness and the balance (up to a maximum of 25 per cent) for general corporate purposes.

AEL's second NCD issuance of Rs 1,000 crore, launched in July last year, was fully subscribed in three hours on the first day.

With the recent rate cuts and a softer interest rate cycle, the AEL NCD issue comes at an opportune time for investors seeking stable, fixed-income avenues. Offering competitive yields compared to similarly rated NCDs and fixed deposits, this public issue presents a valuable proposition for the investors.

The proposed NCDs have been rated "Care AA-; Stable" by CARE Ratings Limited and "[ICRA]AA- (Stable)" by ICRA Limited. Securities with this rating are considered to have a high degree of safety regarding the timely servicing of financial obligations. Such securities carry very low credit risk.

The NCDs are available in tenors of 24 months, 36 months and 60 months with quarterly, annual and cumulative interest payment options across eight series.

- IANS

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Reader Comments

P
Priyanka N
While the yield is good, it's important to remember this is still a debt instrument from a single corporate entity. The 'AA-' rating is reassuring, but diversification is key. I'll allocate a small portion of my fixed-income portfolio, not all.
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Aman W
Adani Group's ambition is clear. They are raising capital to repay debt and fund new projects like green hydrogen. If you believe in India's infra story, this is a way to participate. The 60-month tenor with cumulative interest could be a good long-term saving tool.
S
Sarah B
Interesting to see the minimum application is Rs. 10,000. Makes it accessible for smaller retail investors compared to some other market instruments. The quarterly interest option provides a regular income stream, which is helpful for retirees.
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Karthik V
The group has faced scrutiny in the past. While this is a secured NCD, investors should do their own homework beyond the rating. That said, using 75% to repay existing debt strengthens the balance sheet, which is a positive sign.
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Meera T
Good timing with the softer interest rate cycle. Better returns than my bank FD for a similar tenure. Hope the process is smooth for retail investors. Will discuss with my financial advisor before the 6th Jan opening.

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