Adani Enterprises Launches Rs 1,000 Crore NCD Issue with Attractive 9.30% Yield
Adani Enterprises Limited (AEL), the flagship company of the Adani Group, has announced its second foray into India's domestic bond market with a Rs 1,000 crore non-convertible debenture (NCD) issue. The offering presents an attractive investment opportunity for retail and institutional investors seeking fixed-income securities with competitive yields.
Issue Details and Investment Terms
The NCD issue offers investors an effective yield of up to 9.30% with a maximum tenor of 60 months, making it an appealing option for medium to long-term investment strategies. The subscription window opens on July 9 and remains available until July 22, providing investors with a two-week opportunity to participate.
Each NCD carries a face value of Rs 1,000, with investors required to purchase a minimum of 10 NCDs per application. This structure makes the investment accessible to retail investors while maintaining institutional appeal.
Strong Credit Ratings Provide Investor Confidence
The NCDs have received solid credit ratings from two prominent rating agencies. Both ICRA and CARE Ratings have assigned an 'AA-' rating with a 'stable' outlook, indicating high credit quality and low default risk. These ratings reflect the company's strong financial position and ability to service its debt obligations.
The stable outlook suggests that the rating agencies expect the company to maintain its current financial strength over the medium term, providing additional confidence to potential investors.
Fund Utilization Strategy
Adani Enterprises has outlined a clear strategy for utilizing the raised funds. At least 75% of the proceeds will be dedicated to debt prepayment or repayment, demonstrating the company's commitment to optimizing its capital structure and reducing financial leverage.
The remaining funds will be allocated for general corporate purposes, providing operational flexibility to support the company's diverse business operations and growth initiatives.
Current Debt Position
The company's financial metrics reveal a growing debt profile. Net external debt increased to Rs 49,306 crore by March 2025, up from Rs 30,966 crore in the previous year. Correspondingly, the net debt to EBITDA ratio rose to 2.9 times from 2.3 times during the same period.
This NCD fundraising represents a strategic move to manage this debt burden while accessing capital at competitive rates through the domestic bond market.
Building on Previous Success
This marks AEL's second domestic bond market fundraising initiative. The company's maiden Rs 800 crore NCD issue last year was fully subscribed on the first day, demonstrating strong investor confidence and market appetite for Adani Group securities.
Group Chief Financial Officer Jugeshinder Singh emphasized the company's commitment to inclusive capital markets growth and retail participation in long-term infrastructure development. He noted that the debut NCD offering delivered capital appreciation for debt investors following a rating upgrade within six months.
Issue Structure and Green Shoe Option
The NCD issue features a base size of Rs 500 crore with a green shoe option to raise an additional Rs 500 crore, bringing the total potential fundraising to Rs 1,000 crore. This structure allows the company to gauge market demand and optimize the issue size based on investor response.
The green shoe option provides flexibility to meet excess demand while ensuring that the company raises adequate capital for its debt management objectives.
Market Leadership and Advisory Services
The issue benefits from experienced market intermediaries. Nuvama Wealth Management, Trust Investment Advisors, and Tipsons Consultancy Services are serving as lead managers, bringing their expertise in debt capital markets to ensure successful execution.
These established financial institutions provide credibility and professional management to the fundraising process, supporting both the issuer and potential investors.
Investment Considerations
The NCD issue presents several attractive features for investors. The 9.30% yield compares favorably with current market rates, while the 60-month tenor provides medium-term investment duration. The strong credit ratings and stable outlook add to the investment appeal.
For retail investors, this offering provides an opportunity to participate in the growth story of one of India's largest infrastructure conglomerates while earning competitive fixed returns.
The company's focus on debt reduction through this fundraising also signals financial discipline and commitment to maintaining healthy leverage ratios, which should benefit both equity and debt investors over the long term.
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