Adani Enterprises Launches ₹1,000 Crore NCD Issue with Attractive Returns
Introduction to Adani Enterprises' NCD Offering
Adani Enterprises Limited (AEL), the flagship entity of the Adani Group and a leading business incubator in India, has unveiled its second public offering of secured, rated, listed redeemable non-convertible debentures (NCDs). This follows the successful launch of its first NCD issuance of ₹800 crore in September last year, which was fully subscribed on its opening day.
Commitment to Infrastructure Development
Jugeshinder ‘Robbie’ Singh, Group CFO of Adani Group, emphasized that this new NCD issuance reinforces their dedication to fostering inclusive growth in capital markets and enhancing retail participation in long-term infrastructure projects. The positive market response to AEL’s initial NCD offering, which saw capital appreciation for investors following a rating upgrade within six months, showcases the Group's financial strength and consistent performance.
AEL is recognized as a key player in India's energy and transport sectors, managing vital platforms such as Adani Ports & SEZ, Adani Energy Solutions, Adani Power, and Adani Green Energy. The company is now expanding into next-generation infrastructure sectors, including airports, roads, data centers, and the green hydrogen sector, all of which are crucial for India's ambition to achieve a $5 trillion economy.
Investment Opportunities for Retail Investors
AEL stands out as the only corporate entity outside of non-banking financial companies (NBFCs) offering a listed debt product aimed at retail investors, providing a unique opportunity for individual and non-institutional investors to engage in India's infrastructure growth. With recent interest rate cuts signaling a softer rate environment, this NCD issue is timely for those seeking stable, fixed-income investments. The offering promises competitive yields compared to other similarly rated NCDs and fixed deposits, making it an attractive option for investors.
Details of the NCD Issuance
The proposed NCDs have received ratings of 'Care AA-; Stable' and '[ICRA]AA- (Stable)'. CARE Ratings upgraded AEL's credit rating on February 19, 2025, and reaffirmed it on June 18, 2025. Similarly, ICRA assigned its rating on March 28, 2025, and reaffirmed it on June 17, 2025. Securities with these ratings are deemed to have a high safety level regarding timely financial obligations, indicating very low credit risk.
The base issue size is set at ₹500 crore, with an option to retain oversubscription up to an additional ₹500 crore, totaling ₹1,000 crore. The issuance will open on July 9, 2025, and close on July 22, 2025, with the possibility of early closure or extension.
Each NCD has a face value of ₹1,000, with a minimum application of 10 NCDs, amounting to ₹10,000.
Utilization of Proceeds
At least 75% of the funds raised will be allocated to prepay or repay existing debts, while the remaining 25% will be used for general corporate purposes.
Management of the NCD Issue
Nuvama Wealth Management Limited, Trust Investment Advisors Private Limited, and Tipsons Consultancy Services Private Limited are appointed as the Lead Managers for this issuance.
Investment Tenors and Interest Payments
The NCDs will be available in tenors of 24, 36, and 60 months, offering various interest payment options, including quarterly, annual, and cumulative across eight series.
About Adani Enterprises Limited
Adani Enterprises Limited is the flagship company of the Adani Group, one of India's largest business conglomerates. Over the years, AEL has concentrated on developing emerging infrastructure businesses that contribute to national development and subsequently divesting them into separate listed entities. The company has successfully established significant businesses such as Adani Ports & SEZ, Adani Energy Solutions, Adani Power, and Adani Green Energy, contributing to India's self-reliance and delivering substantial returns to shareholders over three decades.
AEL's future strategic investments focus on the green hydrogen ecosystem, airport management, data centers, roads, and primary industries like copper and petrochemicals, all of which hold considerable potential for value creation.