Is Adani Enterprises Launching a Rs 1,000 Crore NCD Offering with Up to 9.30% Returns?
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Synopsis
Discover how Adani Enterprises is set to raise Rs 1,000 crore through a new NCD offering, promising compelling returns for investors. With a strong market response anticipated, this issuance could be a game-changer for retail participation in infrastructure development.
Key Takeaways
- Issuance Amount: Rs 1,000 crore
- Interest Rate: Up to 9.30% per annum
- Minimum Investment: Rs 10,000
- Tenors Available: 24, 36, and 60 months
- Proceeds Allocation: 75% for debt repayment, 25% for corporate purposes
Ahmedabad, July 6 (NationPress) - Adani Enterprises Limited (AEL) announced on Sunday the initiation of its second public offering of secured, rated, and listed redeemable non-convertible debentures (NCD) totaling Rs 1,000 crore.
The issuance will be open from July 9 to July 22 (with the possibility of early closure or extension), providing an attractive annual return of up to 9.30%.
The NCDs are priced at a face value of Rs 1,000 each, with a minimum application of 10 NCDs and multiples of 1 NCD thereafter, resulting in a minimum investment of Rs 10,000.
These NCDs are designed to deliver competitive profits when compared to similar-rated NCDs and fixed deposits, and they are expected to be listed on both the BSE and NSE. The proposed NCDs carry a rating of Care AA-; Stable and (ICRA) AA- (Stable) as per the company’s report.
AEL’s inaugural NCD offering of Rs 800 crore, which debuted in September last year, was fully subscribed on its first day.
“This second public issuance of NCDs by AEL reinforces our dedication to promoting inclusive growth in capital markets and enhancing retail participation in long-term infrastructure projects. Following the strong market response to our first NCD offering, which provided capital gains for debt investors after a rating upgrade in six months, the Group continues to demonstrate financial strength and reliability,” stated Jugeshinder ‘Robbie’ Singh, Group CFO of Adani Group.
As a pivotal player in India’s essential energy and transport sectors, including Adani Ports & SEZ, Adani Energy Solutions, Adani Power, and Adani Green Energy, AEL is advancing the next generation of infrastructure projects across airports, highways, data centers, and the green hydrogen sector, Singh added.
“Each of these sectors is set to significantly contribute to India’s goal of becoming a $5 trillion economy,” Singh emphasized.
At least 75% of the funds from this issuance will be allocated to the prepayment or repayment, fully or partially, of existing debts incurred by the company, with up to 25% utilized for general corporate needs.
The NCDs are offered with tenors of 24 months, 36 months, and 60 months, providing quarterly, annual, and cumulative interest payment options across eight series, according to the company.
The base issue size stands at Rs 500 crore, with an option to retain over-subscription up to an additional Rs 500 crore (Green Shoe Option), totaling Rs 1,000 crore, according to the flagship company of the Adani Group and the largest listed business incubator in India by market capitalization.
AEL uniquely offers a listed debt product for retail investors, thus presenting an exclusive opportunity for individual and non-institutional investors to engage in India’s infrastructure development.
With recent interest rate cuts and the start of a softer interest rate cycle, the AEL NCD issuance arrives at an ideal moment for investors seeking stable, fixed-income investments. This public offering, which provides competitive yields compared to comparable NCDs and fixed deposits, represents a strong investment opportunity.
CARE Ratings first upgraded AEL’s credit rating on February 19, 2025, and reaffirmed it on June 18.
Point of View
It is crucial to emphasize the importance of Adani Enterprises' announcement as a significant development in India's capital markets. This NCD issuance not only opens doors for retail investors but also demonstrates the company's commitment to driving infrastructure growth in the nation. Such initiatives could play a pivotal role in shaping India's economic landscape.
NationPress
15/07/2025
Frequently Asked Questions
What are NCDs?
NCDs, or non-convertible debentures, are fixed-income instruments that cannot be converted into equity shares and offer a fixed rate of interest.
Who can invest in these NCDs?
Both retail and institutional investors can apply for these NCDs, making it accessible to a broad range of investors.
What is the minimum investment required?
The minimum investment amount is Rs 10,000, which corresponds to 10 NCDs at a face value of Rs 1,000 each.
How will the proceeds be utilized?
Seventy-five percent of the proceeds will be used to repay existing debts, while the remaining 25% will be allocated for general corporate purposes.
What are the interest payment options for these NCDs?
Interest payment options include quarterly, annual, and cumulative payments, providing flexibility for investors.
