Business

Adani Enterprises Launches ₹1,000 Crore NCD Offering With Attractive Yields

Adani Enterprises Limited (AEL), one of India’s leading infrastructure conglomerates, has announced the launch of its second public issuance of secured, rated, and redeemable non-convertible debentures (NCDs) worth ₹1,000 crore.

The issue opens on July 9 and will remain open until July 22, with provisions for early closure or extension depending on subscription levels.

The NCDs offer a maximum yield of 9.30% per annum, providing investors with an attractive fixed-income opportunity amid a softening interest rate cycle.

Each debenture has a face value of ₹1,000, and investors must apply for a minimum of ₹10,000 (10 NCDs), with additional applications accepted in multiples of one NCD.

The company will list the instruments on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The proposed NCDs carry strong credit ratings — ‘Care AA-; Stable’ and ‘ICRA AA- (Stable)’ — reflecting AEL’s robust financial position and market confidence.

Investors fully subscribed to the company’s debut ₹800 crore NCD offering on its first day in September last year, indicating strong demand for the new issue.

Strengthening capital markets & infrastructure

Jugeshinder ‘Robbie’ Singh, Group CFO of the Adani Group, commented, “This second public issuance further deepens our commitment to inclusive capital markets growth and retail participation in long-term infrastructure development. The strong market response to our first NCD issue, which saw capital appreciation following a rating upgrade within six months, is a testament to the Group’s consistent delivery and financial strength.”

Adani Enterprises acts as the incubator for critical infrastructure platforms, including Adani Ports & SEZ, Adani Energy Solutions, Adani Power, and Adani Green Energy.

It is now scaling new ventures in airports, roads, data centres, and the green hydrogen ecosystem — sectors that are vital to India’s journey toward a $5 trillion economy, Singh noted.

At least 75% of the funds raised through this issuance will be utilised to prepay or repay existing indebtedness either fully or partially.

The remaining amount (up to 25%) will be allocated for general corporate purposes, supporting the company’s growth ambitions.

Flexible tenors & payment options

The NCDs are available with tenors of 24, 36, and 60 months. Investors may choose from quarterly, annual, or cumulative interest payment options across eight series.

The base issue size is ₹500 crore, with an option to retain oversubscription up to an additional ₹500 crore under the Green Shoe Option, aggregating to ₹1,000 crore in total.

As India’s largest listed business incubator by market capitalisation, AEL stands out as the only corporate outside NBFCs offering a listed debt product aimed at retail investors.

This provides an uncommon opportunity for individual and non-institutional investors to participate directly in India’s infrastructure growth.

The issuance coincides with recent interest rate cuts, offering investors stable and competitive fixed-income yields compared to similarly rated NCDs and fixed deposits.

The favourable timing makes this issue an appealing proposition for those seeking steady returns.

CARE Ratings first upgraded AEL’s credit rating on 19 February 2025 and reaffirmed it on 18 June 2025, underscoring the company’s financial robustness and creditworthiness.

Also Read: Market Outlook: Q1 FY26 Earnings And India-US Trade Deal In Focus

Geetanjali Mishra

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