Adani Enterprises Limited (AEL), the flagship company of the Adani Group, has announced the launch of its second public issuance of secured, rated, listed redeemable non-convertible debentures (NCDs) worth ₹1,000 crore. The issue offers competitive yields of up to 9.30% per annum, making it an attractive proposition for investors seeking stable, fixed-income avenues.
The NCDs have been rated ‘AA-‘ with a ‘Stable’ outlook by ICRA Limited and CARE Ratings Limited, indicating a high degree of safety regarding timely servicing of financial obligations. The issue comes with a base size of ₹500 crore, with an option to retain over-subscription up to an additional ₹500 crore.
Strong Market Response Expected
The issue is expected to garner strong market response, given the company’s track record of creating sustainable infrastructure businesses and its commitment to inclusive capital markets growth and retail participation in long-term infrastructure development. AEL’s first NCD issuance of ₹800 crore, launched in September last year, was fully subscribed on the first day, demonstrating strong investor interest.
Utilization of Proceeds
At least 75% of the proceeds from the issuance will be utilized towards the prepayment or repayment, in full or in part, of the existing indebtedness availed by the company, and the balance (up to a maximum of 25%) for general corporate purposes. This strategic move is expected to further strengthen the company’s financial position and support its growth plans.
NCD Details
The NCDs are available in tenors of 24 months, 36 months, and 60 months with quarterly, annual, and cumulative interest payment options across eight series. The minimum application size is ₹10,000, and each application will be for a minimum of 10 NCDs and in multiples of 1 NCD thereafter. The issue opens on July 9, 2025, and closes on July 22, 2025.
Investment Opportunity
The Adani Group’s commitment to inclusive capital markets growth and retail participation in long-term infrastructure development is evident in this new issuance. With the recent rate cuts and the beginning of a softer interest rate cycle, the AEL NCD issue comes at an opportune time for investors seeking stable, fixed-income avenues. The issue is expected to provide a valuable investment opportunity for retail investors, institutional investors, and high net-worth individuals.
Conclusion
The Adani Enterprises NCD issue is an attractive investment opportunity that offers competitive yields and a high degree of safety. With its strong market response and strategic utilization of proceeds, the issue is expected to further strengthen the company’s financial position and support its growth plans. Investors can consider this issue as a viable option for generating stable returns.
