Ahmedabad, Jan 2: Adani Enterprises Limited (AEL), the flagship company of the Adani Group, on Friday announced the launch of its third public issuance of secured, rated, listed, redeemable, non-convertible debentures (NCDs) of Rs 1,000 crore, offering up to 8.90 per cent per annum.
Issue opening and application details
The issue will open on January 6 and close on January 19, with an option of early closure or extension. The NCDs have a face value of Rs 1,000 each.
Each application will be for a minimum of 10 NCDs and in multiples of one NCD thereafter. The minimum application size would be Rs 10,000, said AEL, India’s largest listed business incubator in terms of market capitalisation.
Issue size and green shoe option
The base size issue is Rs 500 crore, with an option to retain over-subscription up to an additional Rs 500 crore (green shoe option), aggregating up to Rs 1,000 crore, the company said.
Company statement on capital market access
“This third NCD issuance marks another step in our journey to broaden access to India’s capital markets and give retail investors a stake in long-term infrastructure growth. The strong response to our previous offerings reinforces trust in our strategy and financial discipline, and we aim to build on that momentum,” Adani Group’s Group CFO Jugeshinder ‘Robbie’ Singh said.
Focus on infrastructure and economic transformation
“As the incubator for India’s next wave of infrastructure, from airports and roads to data centres and green hydrogen, AEL remains focused on creating businesses that will power India’s economic transformation,” Singh noted.
Utilisation of proceeds
According to the company, at least 75 per cent of the proceeds from the issuance will be utilised towards the prepayment or repayment or payment, in full or in part, of the indebtedness availed by the company, and/or any interest on such indebtedness. The balance amount, up to a maximum of 25 per cent, will be used for general corporate purposes.
Previous NCD issue response
AEL’s second NCD issuance of Rs 1,000 crore, launched in July last year, was fully subscribed within three hours on the first day.
Investor outlook amid softer rate cycle
With recent rate cuts and a softer interest rate cycle, the AEL NCD issue comes at an opportune time for investors seeking stable fixed-income avenues. Offering competitive yields compared to similarly rated NCDs and fixed deposits, the public issue presents a proposition for investors.
Credit ratings and safety
The proposed NCDs have been rated “Care AA-; Stable” by CARE Ratings Limited and “[ICRA]AA- (Stable)” by ICRA Limited. Securities with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.
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Tenure and interest options
The NCDs are available in tenors of 24 months, 36 months and 60 months, with quarterly, annual and cumulative interest payment options across eight series.
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