Adani Enterprises Limited (AEL) has announced the launch of its second public issue of secured, rated, listed non-convertible debentures (NCDs), aiming to raise up to ₹1,000 crore. This issue comes after the success of the company’s maiden NCD issue last year, which was fully subscribed on the first day.
Details of the NCD Issue
Issue Size:
- Base issue size of ₹500 crore
- Green-shoe option of ₹500 crore
- Total size up to ₹1,000 crore
Opening and Closing Dates:
- Opens on July 9, 2025
- Closes on July 22, 2025 (with an option for early closure or extension)
Tenors Offered:
- 24 months
- 36 months
- 60 months
Coupon Rates:
- Yields up to 9.30% per annum depending on series and tenor
- Options for annual, quarterly, or cumulative interest payouts
Credit Rating:
- Rated ‘AA–’ with a stable outlook by both ICRA and CARE, reflecting strong credit quality
Use of Proceeds
The company plans to allocate at least 75% of the net proceeds to pre-payment or repayment of existing borrowings. The remaining funds will be used for general corporate purposes.
Adani Enterprises has been focusing on debt reduction and infrastructure expansion across its businesses. As of March 2025, the company’s consolidated external debt stood at ₹49,306 crore, which has increased from ₹30,966 crore a year earlier. However, the net debt-to-EBITDA ratio remains comfortable at 2.9 times.
Why This Issue Matters
This NCD issue provides an opportunity for investors looking for predictable income with relatively higher yields compared to bank fixed deposits. The attractive coupon rates and the company’s track record of timely interest payments make this a compelling option.
In addition, Adani Enterprises’ first NCD issue in September 2024 received an enthusiastic response from institutional and retail investors alike, highlighting the appetite for high-quality debt instruments.
What Investors Should Consider
- Subscription Demand: Given the previous oversubscription, early application may be necessary to secure an allotment.
- Interest Payout Choice: Investors can select between annual, quarterly, or cumulative interest, which can help align the payouts with personal cash flow needs.
- Credit Profile: While the group’s debt has grown, the company continues to maintain robust earnings and has consistently reduced borrowing costs.
- Liquidity: The NCDs will be listed on both NSE and BSE, offering investors tradability if they wish to exit before maturity.
Quick Summary Table
| Feature | Details |
|---|---|
| Issue Size | ₹500 crore base + ₹500 crore green-shoe |
| Tenors | 24, 36, 60 months |
| Yield | Up to 9.30% p.a. |
| Interest Payment Options | Annual / Quarterly / Cumulative |
| Credit Rating | ‘AA–’ (ICRA and CARE) |
| Minimum Application | ₹10,000 (10 NCDs) |
| Listing | BSE and NSE |
| Use of Funds | 75% debt repayment, 25% corporate purposes |
Final Thoughts
Adani Enterprises’ second public NCD issue underscores the group’s ongoing efforts to optimize its balance sheet and diversify its funding base. For investors seeking higher-yielding, fixed-income products backed by a reputed business group, this NCD issue provides an attractive option. However, as with all debt investments, it is essential to assess personal risk appetite and consult a financial advisor before investing.
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