Adani Enterprises launches third public issue of NCDs worth Rs 1,000 crore, offering returns of up to 8.90%

Ahmedabad, Adani Enterprises Limited (AEL), the flagship company of the Adani Group, on Friday announced the launch of the third public issue of secured, rated, listed, callable, non-convertible debentures (NCDs) worth Rs 1,000 crore, offering up to 8.90 percent per annum.The issue opens on January 6 and closes on January 19, with an option to close early or extend. The NCDs have a face value of Rs 1,000 each.

Each application applies to a minimum of 10 NCDs and thereafter in multiples of 1 NCD. The minimum application size would be Rs 10,000, said AEL, India’s largest listed business incubator in terms of market capitalization.

The base size is Rs 500 crore, with an option to retain oversubscription up to an additional Rs 500 crore (green shoe option), which amounts to Rs 1,000 crore (issue size), the company 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 offering reinforces confidence in our strategy and financial discipline, and we aim to build on that momentum,” said Jugeshinder ‘Robbie’ Singh, CFO of Adani Group.

“As the incubator for India’s next wave of infrastructure, from airports and roads to data centers and green hydrogen, AEL remains focused on creating businesses that will drive India’s economic transformation,” Singh said.

According to the company, at least 75 percent of the proceeds of the issue will be used for the early redemption or redemption or payment, in whole or in part, of the company’s indebtedness, and/or any interest on such indebtedness and the balance (up to a maximum of 25 percent) for general corporate purposes. AEL’s second NCD issue of Rs 1,000 crore, launched in July last year, was fully subscribed in three hours on the first day.

With the recent rate cuts and a softer interest rate cycle, the AEL NCD issuance comes at an opportune time for investors seeking stable, fixed income opportunities. This public issue offers competitive returns compared to similarly rated NCDs and fixed deposits and represents a valuable proposition for investors.

The proposed NCDs have been rated “Care AA-; Stable” by CARE Ratings Limited and “[ICRA]AA- (Stable)” by ICRA Limited. Securities with this rating are considered to offer a high degree of security with regard to timely fulfillment of financial obligations. Such securities carry very low credit risk.

The NCDs are available in 24-month, 36-month and 60-month terms, with quarterly, annual and cumulative interest payment options across eight series.