Adani Enterprises Limited (AEL), the flagship firm of the Adani Group, on Friday unveiled its third public issuance of secured, rated, listed and redeemable non-convertible debentures (NCDs) aggregating Rs 1,000 crore, with interest rates going up to 8.90 per cent per annum.
The company will open the issue for subscription on January 6 and close it on January 19, while retaining the option to close the issue early or extend it.
Each NCD carries a face value of Rs 1,000. Investors must apply for a minimum of 10 NCDs, and they can submit further applications in multiples of one NCD.
The company stated that it has fixed the minimum investment amount at Rs 10,000.
The base issue size stands at Rs 500 crore, with a green shoe option allowing the retention of oversubscription up to an additional Rs 500 crore, taking the total issue size to Rs 1,000 crore.
Explaining the rationale behind the issue, Adani Group Chief Financial Officer Jugeshinder ‘Robbie’ Singh said, “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.”
“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,” he added.
He emphasised that these sectors will play a key role in driving India’s economic transformation.
Use of Proceeds and Balance Sheet Strategy
According to the company’s disclosure, at least 75 per cent of the funds raised through the issue will be utilised towards the prepayment, repayment or partial payment of existing borrowings, along with related interest obligations.
Meanwhile, the company will allocate the remaining portion, capped at 25 per cent, towards general corporate purposes.
Earlier, Adani Enterprises’ second public NCD issue of Rs 1,000 crore, launched in July last year, achieved full subscription within just three hours on the opening day.
In the context of recent rate cuts and a softening interest rate environment, the current NCD offering arrives at a favourable time for investors seeking steady fixed-income returns.
With yields that compare favourably with similarly rated NCDs and bank fixed deposits, the issue offers an appealing investment option.
The proposed NCDs have received ratings of ‘CARE AA-; Stable’ from CARE Ratings Limited and ‘[ICRA] AA- (Stable)’ from ICRA Limited.
Such ratings signify a high level of safety and very low credit risk in terms of the timely servicing of financial commitments.
Investors can choose from tenors of 24 months, 36 months and 60 months, along with quarterly, annual and cumulative interest payout options across eight different series.
Also Read: Adani Total Gas Slashes CNG And PNG Prices Following PNGRB Tariff Overhaul
To read more such news, download Bharat Express news apps
