Looking for High Fixed Returns? Adani Enterprises’ New NCDs Offer Up to 9.30%; What Should Investors Know?

Adani Enterprises Limited (AEL), the flagship company of the Adani Group and India's largest listed business incubator by market capitalisation has announced the launch of its second public issuance of secured, rated, listed, redeemable non-convertible debentures (NCDs), aiming to raise Rs 1,000 crore. The issue will open for subscription on July 9, 2025, and is scheduled to close on July 22, 2025, with a provision for early closure or extension depending on market response.

Adani Enterprises NCD Face Value

The NCDs, which have a face value of Rs 1,000 per unit, will be available in tenors of 24, 36, and 60 months, offering interest payout options on a quarterly, annual, or cumulative basis, across a total of eight different series.

The minimum investment requirement has been set at 10 NCDs, equating to Rs 10,000 and investors can apply in multiples of one NCD thereafter. The issue offers an attractive annual yield of up to 9.30%, positioning it as a strong alternative to similarly rated NCDs and traditional fixed deposit schemes.

Favourable Ratings from Leading Credit Agencies

The offering has received favourable ratings from leading credit agencies, with CARE Ratings assigning an "AA- Stable" rating and ICRA assigning an "AA- Stable" rating. These ratings reflect the company's sound credit profile, underpinned by its diversified operations and consistent financial performance.

CARE Ratings first upgraded AEL's credit rating in February 2025, and the agency reaffirmed the rating on June 18, further enhancing investor confidence in the company's long-term financial strength and credibility.

This latest issuance builds on the success of AEL's maiden NCD issue in September 2024, which was fully subscribed on the very first day, reflecting strong investor interest. The current issuance has a base size of Rs 500 crore, with a green shoe option to retain oversubscription of an additional Rs 500 crore, thereby aggregating up to Rs 1,000 crore.

According to the company, at least 75% of the net proceeds from this offering will be utilised for the prepayment or repayment of existing borrowings, while the remaining 25% or less will be allocated for general corporate purposes. This strategic use of funds will help strengthen AEL's balance sheet and support its growth across critical infrastructure sectors.

As per Jugeshinder "Robbie" Singh, Group CFO of Adani Group, "The second public issuance of NCDs by AEL further deepens our commitment to inclusive capital markets growth and retail participation in long-term infrastructure development. This new issuance follows the strong market response to AEL's debut NCD offering, which witnessed capital appreciation for debt investors after a rating upgrade within six months, reflecting the Group's consistent delivery and financial robustness."

Mr Singh also highlighted the company's unique position as an incubator of next-generation infrastructure platforms in India. AEL plays a central role in developing and scaling ventures in ports and logistics (Adani Ports & SEZ), energy transmission and distribution (Adani Energy Solutions), power generation (Adani Power), and renewables (Adani Green Energy). Beyond these, the company is also making major inroads in airports, roads, data centres, and the green hydrogen ecosystem, each of which is expected to be transformative for India's economy.

"Each of these verticals is poised to play a transformative role in India's journey toward becoming a $5 trillion economy," Singh added.

Notably, AEL remains the only corporate entity outside the non-banking financial company (NBFC) sector to offer a listed debt product specifically tailored for retail investors, presenting a rare opportunity for individual and non-institutional investors to take part in India's infrastructure growth story through fixed-income instruments.

The timing of this issue is also considered advantageous. With central banks beginning to shift towards a softer interest rate regime and the possibility of further rate cuts on the horizon, the AEL NCD issue provides an attractive proposition for investors looking for stable returns in a lower interest rate environment.