Adani Enterprises NCD: Rs 1,000 Crore Issue Offers Up to 8.90% Return

Introduction to the Offering

Adani Enterprises Limited (AEL), the flagship entity of the Adani Group, has announced its third public issuance of non-convertible debentures (NCDs). The company aims to raise Rs 1,000 crore through this offering, providing an opportunity for retail investors to participate in the infrastructure sector. The secured, rated, and listed NCDs offer an attractive annual return of up to 8.90%, presenting a stable fixed-income option in the current market environment.

Details of the NCD Issue

The public issue has a base size of Rs 500 crore, with a green shoe option to retain an additional Rs 500 crore, aggregating to a total of Rs 1,000 crore. The issue is scheduled to open on January 6, 2026, and will close on January 19, 2026, though it may close earlier if fully subscribed. The NCDs have a face value of Rs 1,000 each. The minimum application size is set at Rs 10,000, which corresponds to 10 NCDs, and investors can apply for more in multiples of one NCD thereafter. These debentures will be listed on both the BSE and the NSE, ensuring liquidity for investors.

Investment Tenors and Returns

Investors are provided with flexible investment options across different tenors and interest payment frequencies. The NCDs are available in tenors of 24 months, 36 months, and 60 months. The interest payment options include quarterly, annual, and cumulative payouts, catering to varied investor needs for regular income or long-term wealth accumulation. The highest effective yield offered is 8.90% per annum for the 60-month option, making it a competitive offering compared to other fixed-income instruments like fixed deposits.

Credit Rating and Investor Safety

The proposed NCDs have received strong credit ratings from two leading agencies. CARE Ratings Limited has assigned a 'CARE AA-; Stable' rating, while ICRA Limited has provided an '[ICRA]AA- (Stable)' rating. Securities with an 'AA-' rating are considered to have a high degree of safety regarding the timely servicing of financial obligations. This rating indicates a very low credit risk, providing a level of assurance to investors about the security of their principal and interest payments.

Utilization of Proceeds

Adani Enterprises has clearly outlined the intended use of the funds raised from this NCD issue. A significant portion, at least 75% of the proceeds, will be utilized for the prepayment or repayment of the company's existing debt. The remaining amount, up to a maximum of 25%, is allocated for general corporate purposes. This strategic allocation of funds is aimed at strengthening the company's balance sheet and supporting its ongoing business operations and expansion plans.

Company's Strategic Vision

Jugeshinder 'Robbie' Singh, the Group CFO of Adani Group, stated that this third NCD issuance is another step towards broadening access to India's capital markets and allowing retail investors to invest in long-term infrastructure growth. He highlighted that AEL serves as an incubator for India's next wave of infrastructure, spanning airports, roads, data centers, and the green hydrogen ecosystem. The company remains focused on building businesses that will contribute to India's economic transformation.

Strong Track Record and Previous Success

The confidence in this offering is bolstered by the success of AEL's previous NCD issues. The second NCD issuance of Rs 1,000 crore, launched in July of the previous year, was fully subscribed within just three hours on its opening day, receiving bids worth over Rs 1,400 crore. This strong response, particularly from retail and non-institutional investors, underscores the trust in Adani's strategy and financial discipline. AEL is one of the few non-NBFC corporates to offer a listed debt product for retail investors, creating a unique opportunity for individuals to participate in India's infrastructure development.

Market Context and Opportunity

This NCD issue is timed well, considering the current financial landscape marked by a softer interest rate cycle. For investors seeking stable and predictable returns, this offering presents a valuable proposition. The competitive yields offered by AEL's NCDs make them an attractive alternative to similarly rated debt instruments and traditional fixed deposits. The issue is managed by a consortium of lead managers, including Trust Investment Advisors Private Limited.

Conclusion

Adani Enterprises' third NCD issue of Rs 1,000 crore provides a compelling opportunity for fixed-income investors. With strong credit ratings, competitive returns, and a clear vision for funding national infrastructure projects, the offering is positioned to attract significant interest. The success of past issues reflects strong investor confidence in the Adani Group's execution capabilities and its role in India's growth story.