Adani Enterprises shares trade marginally lower: Firm announces ₹1,000 crore NCD issue; key details to know

NCD stands for non-convertible debentures. NCDs are fixed-income instruments (debt instruments) used by companies to raise medium- to long-term funds from investors. They are called non-convertible because they cannot be converted into equity shares of the issuing company, unlike convertible debentures.

The NCD-issuing company offers interest on the debt instruments — the main benefit for investors.

The Adani NCD issue opens on Wednesday, July 9, 2025, and closes on July 22, a company statement said.

It offers an effective yield of up to 9.30% per annum.

This is Adani Enterprises' second public issuance of secured, rated, listed, redeemable, non-convertible debentures.

"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." Jugeshinder 'Robbie' Singh, Group CFO, Adani Group, said.

"As the incubator of India's most critical energy and transport utility platforms – including Adani Ports & SEZ, Adani Energy Solutions, Adani Power, and Adani Green Energy – AEL is successfully scaling the next generation of infrastructure businesses across airports, roads, data centres, and the green hydrogen ecosystem. Each of these verticals is poised to play a transformative role in India's journey toward a USD 5 trillion economy," the CFO added.

AEL's first NCD issuance of ₹800 crore, launched in September last year, was fully subscribed on the first day. AEL is the only corporate (outside of NBFCs) offering a listed debt product for retail investors, thereby creating a rare opportunity for individual and non-institutional investors to participate in India's infrastructure growth story.

With the recent rate cuts and the beginning of 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, this public issue presents a valuable proposition for the investors.

The proposed NCDs have been rated "Care AA-; Stable" and "[ICRA]AA- (Stable)". CARE Ratings first upgraded the credit rating of AEL on February 19, 2025, and reaffirmed the rating on 18 June 2025.

ICRA assigned the '[ICRA]AA-(Stable)' rating on March 28, 2025, and reaffirmed it on June 17, 2025. Securities with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such securities carry very low credit risk.

The base size issue is ₹500 crore, with an option to retain over-subscription up to an additional ₹500 crore (greenshoe option), aggregating up to ₹1,000 crore.

The NCDs have a face value of ₹1,000 each. Each application will be for a minimum of 10 NCDs and in multiples of 1 NCD thereafter, making the minimum application size ₹10,000.

"At least 75 per cent of the proceeds from the issuance will be utilised towards the prepayment or repayment, in full or in part, of the existing indebtedness availed by the company and the balance (up to a maximum of 25 per cent) for general corporate purposes," the statement said.

Nuvama Wealth Management Ltd, Trust Investment Advisors Pvt Ltd and Tipsons Consultancy Services Pvt Ltd are the lead managers of the issue.

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.

Adani Enterprises QIP details

In October 2024, Adani Enterprises approved a ₹16,600 crore share sale to large investors via a qualified institutional placement (QIP) issue.

In a regulatory filing, the company said its board had set the floor price for the issue at ₹3,117.4750 per equity share.

Adani Enterprises said the QIP committee at its meeting passed resolutions authorising the opening of the issue on October 9, 2024, approved the floor price for the issue, and approved and adopted the preliminary placement document.

A QIP is, at its core, a way for listed companies to raise capital without having to submit legal paperwork to market regulators.