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Adani Power Raises Record Rs 7,500 Crore via NCDs, Largest Domestic Bond Issue

Adani Power has raised nearly Rs 7,500 crore through the issuance of non-convertible debentures, marking the Adani Group's largest domestic bond issuance. Major institutional investors include SBI, ICICI Bank, Axis Bank, and Kotak Mahindra Bank. The funds are intended for general corporate purposes as the company plans to significantly expand its thermal power capacity. The fundraising follows recent moves by rating agencies to revise the outlook on Adani Group entities to "stable."

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

  • Rs 7,500 crore raised via NCDs
  • Top banks like SBI, ICICI among investors
  • Proceeds for general corporate expenses
  • Group outlook revised to stable by rating agencies
1 min read

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

Adani Power raises Rs 7,500 crore via NCDs from top banks. Funds for corporate needs as group outlook turns stable and capacity expands.

"largest domestic bond issuance to date - sources"

New Delhi, January 23

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

According to sources, major investors in the 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
Scaling from 18 GW to 42 GW is an ambitious target. While the capital raise is impressive, I hope a significant portion is directed towards newer, cleaner technologies and not just expanding thermal capacity. We need a balanced energy transition. 🌱
R
Rohit P
The market sentiment has clearly turned. From the Hindenburg report to now having top banks invest 7500 crores and rating agencies revising outlook to stable – what a comeback story! Adani Power share has been on a good run too. 💹
S
Sarah B
"General corporate expenses" is quite a broad category. While the fundraising is a positive sign, greater transparency on the exact allocation of such a large sum would be reassuring for the average investor. The trust needs to be rebuilt brick by brick.
V
Vikram M
This is crucial for India's infrastructure growth. Power is the backbone of the economy, and such massive capacity expansion will support manufacturing and job creation. The involvement of our premier banks shows it's a strategic national priority.
K
Karthik V
The fact that the ₹1000 crore public NCD was fully subscribed in an hour shows retail investor appetite is also back. But as a small investor, I always get nervous with such large, rapid debt raises. Hope the expansion plans are executed efficiently.

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