Adani Enterprises Ltd (AEL), the flagship company of the Adani Group, is set to raise ₹1,000 crore through its second public issue of secured, rated, listed, redeemable non-convertible debentures (NCDs). The issue is scheduled to open on July 9, 2025, and will close on July 22, 2025, with the possibility of early closure or extension.

Issue Details

The NCDs have a face value of ₹1,000 each, and the minimum application size is ₹10,000, which constitutes 10 NCDs. Further investments can be made in multiples of one NCD thereafter. The base issue size is ₹500 crore, with a green shoe option to retain an additional ₹500 crore, bringing the total issue size to ₹1,000 crore.

The NCDs will be offered in tenors of 24 months, 36 months, and 60 months, with options for quarterly, annual, and cumulative interest payments across eight series. The effective yield for these NCDs can go up to 9.30% per annum. For investors opting for quarterly payouts, the coupon will be 8.85% on three-year and 9.00% on five-year notes. Specifically, Series 3 offers 8.85% for 36 months, Series 1 offers 8.95% for 24 months, Series 6 offers 9.00% for 60 months, Series 4 offers 9.15% for 36 months, Series 7 offers 9.30% for 60 months, and the highest coupon rate of 9.30% is offered for Series 7 with tenures 60 months.

The NCDs are proposed to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Allotment will be done on a first-come-first-served basis.

Purpose of the Issue

Adani Enterprises plans to utilize at least 75% of the net proceeds from the NCD issue for the prepayment or repayment of its existing debt. The remaining 25% will be allocated for general corporate purposes. As of March 2025, Adani Enterprises' total debt stood at ₹912.10 Billion. Its net external debt increased to ₹49,306 crore at the end of March, up from ₹30,966 crore a year ago, while net debt to EBITDA ratio went up to 2.9 times from 2.3 times during this period.

Credit Ratings and Lead Managers

The proposed NCDs have been rated "Care AA-; Stable" by CARE Ratings and "(ICRA) AA- (Stable)" by ICRA. These ratings indicate a high degree of safety for timely servicing of financial obligations and a very low credit risk.

Nuvama Wealth Management Limited, Trust Investment Advisors Private Limited, and Tipsons Consultancy Services Private Limited are acting as the Lead Managers for the NCD issue.

Strategic Significance

According to Jugeshinder 'Robbie' Singh, Group CFO of Adani Group, this second public issuance of NCDs by AEL deepens the company's commitment to inclusive capital markets growth and retail participation in long-term infrastructure development. He also noted that the 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.

AEL emphasizes that it remains the only corporate entity (outside of NBFCs) offering a listed debt product aimed at retail investors, thus enabling both institutional and individual investors to participate in infrastructure development. The company believes that with recent rate cuts and the beginning of a softer interest rate cycle, the NCD issue comes at an opportune time for investors seeking stable, fixed-income avenues.

Financial Performance

Adani Enterprises has demonstrated strong financial performance. For the full fiscal year FY25, the company reported a consolidated net profit of ₹3,845 crore, a 752% year-on-year (YoY) increase. Consolidated revenue for FY25 reached ₹1,00,365 crore, a 2% increase YoY, and EBITDA rose 26% to ₹16,722 crore. Profit After Tax for FY25 more than doubled, increasing 1.2 times to ₹7,112 crore. The company's net debt to EBITDA remained below 3x, supported by strong cash generation and improved earnings. The company has also shown good profit growth of 103.27% for the past 3 years and has been maintaining healthy ROE of 21.28% and ROCE of 23.34% over the past 3 years.