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Adani Power to Raise ₹7,500 Crore via NCDs in Group's Largest Domestic Bond Issue

Adani Power is set to raise nearly ₹7,500 crore through non-convertible debentures, marking the Adani Group's largest domestic bond issuance to date. Major investors include leading banks like SBI and ICICI Bank, with proceeds earmarked for general corporate purposes. The company, which operates 18 GW of power capacity, plans a significant expansion to 42 GW by FY32. This move follows improved investor confidence, with rating agencies like Moody's and Fitch revising their outlook on Adani entities to "stable."

Key Points: Adani Power Raises ₹7,500 Crore in Largest Domestic Bond Issue

  • ₹7,500 crore NCD issuance
  • Backed by SBI, ICICI, Axis, Kotak
  • Funds for corporate expenses
  • Capacity expansion to 42 GW by FY32
  • Rating outlook revised to stable
2 min read

Adani Power to raise Rs 7,500 crore through NCD; largest domestic bond issuance by Adani Group

Adani Power plans a ₹7,500 crore NCD issuance, the Adani Group's largest domestic bond issue, backed by major banks for corporate expenses.

"risks related to the probe were 'manageable' in the near term - Fitch"

New Delhi, January 23

Adani Power is planning to raise nearly Rs 7,500 crore from institutional investors through the issuance of non-convertible debentures, sources familiar with the development told. This would mark the Adani Group's largest domestic bond issuance to date.

According to sources, major investors in the proposed NCD issue include SBI, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, among others.

The proceeds from the fundraise are expected to be used for general corporate expenses and other requirements, they said.

Adani Power, the group's thermal power arm, currently operates 18 GW of installed capacity and has outlined plans to scale this up to 42 GW by FY32.

As per the company's latest consolidated financial results, Adani Power's net debt-to-EBITDA ratio stands at approximately 1.6x.

Meanwhile, global rating agencies Moody's and Fitch have recently revised the outlook on Adani Group entities to "stable," citing limited near-term impact from the ongoing US investigation. In November, Fitch noted that risks related to the probe were "manageable" in the near term.

Earlier this month, Adani Enterprises Ltd.'s Rs 1,000-crore public NCD issue was fully subscribed within the first hour of its launch on January 6.

At the close of trading on Friday, shares of Adani Power were priced at Rs 132.96.

- ANI

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Reader Comments

P
Priya S
Rs 7,500 crore is a huge amount! While the expansion to 42 GW is ambitious, I hope a significant portion of this capital is also directed towards greener energy transitions. We need power, but sustainable power.
R
Rohit P
The stock price has recovered well. I invested a small amount last year and it's paying off. This NCD issue seems like a solid move for debt management. "General corporate expenses" is a bit vague though.
S
Sarah B
Interesting to see the US investigation being cited as having "limited near-term impact." As an observer of Indian markets, the speed of Adani's comeback is remarkable. The domestic institutional trust is the key story here.
V
Vikram M
With great power comes great responsibility (pun intended). Doubling capacity is good for the economy and jobs, but I sincerely hope the expansion follows all environmental norms. We've seen issues in the past.
K
Karthik V
The net debt-to-EBITDA at 1.6x is actually quite healthy for a capital-intensive sector like power. This fundraising should improve it further. Bullish on the stock for the long term. 💹

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