Adani Enterprises NCD Issue 2024: Yields Up to 9.90%

Introduction to Adani Enterprises' Maiden NCD Issue

Adani Enterprises Limited (AEL), the flagship entity of the Adani Group, has announced its first public issuance of secured, rated, and listed non-convertible debentures (NCDs). The issue is scheduled to open for subscription on September 4, 2024, and will close on September 17, 2024. This move marks a significant step for the business incubator, providing retail and other investors an opportunity to participate in its growth by investing in its debt instruments. The company aims to raise a substantial amount to manage its debt and fund corporate activities, reflecting a strategic approach to capital management.

Structure and Size of the Offering

The total size of the NCD issue is up to ₹800 crore. This is structured with a base issue size of ₹400 crore and a green shoe option to retain over-subscription up to an additional ₹400 crore. Each NCD has a face value of ₹1,000. For investors looking to participate, the minimum application size has been set at ₹10,000, which corresponds to 10 NCDs. Thereafter, investments can be made in multiples of ₹1,000, equivalent to one NCD. This structure is designed to be accessible to a broad range of investors, from retail participants to high-net-worth individuals.

Coupon Rates and Investment Tenors

AEL is offering these NCDs across eight different series, providing flexibility in terms of investment tenure and interest payment frequency. The tenors available are 24 months, 36 months, and 60 months. Investors can choose from quarterly, annual, or cumulative interest payment options. The coupon rates are competitive, with the effective yield for investors reaching as high as 9.90% per annum for the 60-month cumulative option. This attractive yield is expected to draw significant interest in the current market environment where investors are seeking stable, fixed-income opportunities.

Creditworthiness and Safety

The NCDs have been rated “CARE A+; Positive” by CARE Ratings Limited. A rating in this category is considered to have an adequate degree of safety regarding the timely servicing of financial obligations. The 'Positive' outlook suggests a potential for a rating upgrade in the future, contingent on the company's performance. This rating provides investors with a degree of assurance about the low credit risk associated with the debentures, making it a relatively secure investment choice within the fixed-income space.

Utilization of Funds

Adani Enterprises has clearly outlined the intended use of the proceeds from this NCD issue in its prospectus. The company plans to utilize at least 75% of the net proceeds for the prepayment or repayment of its existing indebtedness. The remaining amount, up to 25%, will be used for general corporate purposes. This allocation strategy is aimed at strengthening the company's balance sheet by reducing its debt burden and providing capital for its operational and strategic initiatives, in compliance with SEBI regulations.

Application and Allotment Process

The issue will be open for subscription during working hours from September 4 to September 17, 2024, with the possibility of early closure or extension. Allotment will be made on a first-come, first-served basis. However, if the issue is oversubscribed, the allotment will shift to a proportionate basis for applications received on the date of oversubscription. The NCDs are proposed to be listed on both the BSE Limited (BSE) and the National Stock Exchange of India Ltd. (NSE), ensuring liquidity for investors who may wish to trade them on the secondary market.

A Track Record of Successful Debt Issuances

This maiden NCD issue in 2024 set a precedent for Adani Enterprises. The company followed up with two more successful public NCD issues in July 2025 and January 2026, both for ₹1,000 crore each. The second issue in July 2025 was notably oversubscribed within three hours on its opening day, receiving bids worth over ₹1,400 crore. This strong response, particularly from retail and non-institutional investors, highlighted growing confidence in the Adani brand and its financial instruments. Jugeshinder 'Robbie' Singh, Group CFO of Adani Group, noted that these issuances are part of a broader strategy to widen access to India's capital markets and allow retail investors to participate in the country's long-term infrastructure growth.

Company Overview and Financial Health

Established in 1993, Adani Enterprises Limited is the incubator of the Adani Group, responsible for developing and nurturing new businesses in critical sectors like energy, transportation, and infrastructure. The company has a proven track record of creating sustainable businesses that have become leaders in their respective industries. A look at its financial performance provides context to its stability and growth trajectory.

Note: Financial figures are based on past performance data provided in related documents.

Conclusion

Adani Enterprises' maiden NCD issue in September 2024 represents a compelling opportunity for fixed-income investors. With attractive yields, multiple tenor options, and a strong credit rating, it is positioned as a viable investment for those seeking stable returns. The planned use of proceeds for debt reduction further enhances the company's financial profile. The subsequent success of its later NCD issues underscores the market's positive reception and solidifies AEL's strategy of leveraging the public debt market to fuel its ambitious infrastructure development plans.