Non-Convertible Debentures to Fund Growth Initiatives; Rated AA by CRISIL and ICRA, Offering Attractive Yields for Retail Investors
Adani Enterprises Ltd (AEL), the flagship entity of the Adani Group, is set to launch a public issue of non-convertible debentures (NCDs) worth up to ₹1,000 crore next week. The issue, comprising a base size of ₹500 crore with a green shoe option of ₹500 crore, will open for subscription on January 13, 2026, and close on January 24, 2026. This marks AEL’s return to the public bond market after a gap, aimed at diversifying funding sources amid the group’s aggressive expansion across ports, airports, green energy, and digital infrastructure. Rated ‘AA’ with a stable outlook by CRISIL and ICRA, the NCDs promise attractive coupon rates for retail and high-net-worth investors, signaling confidence in the conglomerate’s credit profile.
Issue Details: Tenor, Coupons, and Allotment
The NCDs will be offered in three series with tenors of 24 months, 36 months, and 60 months. Coupon rates are expected in the range of 9.25-9.75% annually (paid annually or cumulatively), subject to final pricing. The minimum application size is ₹10,000 (10 NCDs), with additional lots in multiples of ₹1,000.
- Allotment: First-come, first-served basis, with reservations for retail (up to ₹2 lakh), HNI (above ₹2 lakh), and institutional investors.
- Listing: Proposed on BSE and NSE for secondary market trading.
- Use of Proceeds: Primarily for capital expenditure, debt repayment, and general corporate purposes across group entities.
Lead managers include SBI Capital Markets, Axis Capital, and JM Financial. The issue benefits from the group’s improved liquidity post-FPO and international bond raises.
Strategic Context: Funding the Growth Engine
Adani Enterprises, valued at over ₹6 lakh crore market cap, acts as the incubator for the group’s new ventures. The bond proceeds will support ₹50,000 crore+ capex planned for FY26 across renewables (targeting 50 GW by 2030), airports (Navi Mumbai operational by mid-2026), and data centers. Recent successes, like the ₹20,000 crore FPO in 2024 and $2 billion international bonds, have bolstered investor confidence.
Chairman Gautam Adani stated: This public NCD issue reflects our commitment to broad-based funding and delivering value to retail investors while fueling India’s infrastructure growth.
The bonds carry tax implications under Section 2(48) of the Income Tax Act, with TDS applicable for resident investors exceeding thresholds.
Investor Appeal: High Yields in a Low-Rate Environment
With RBI repo at 5.25% post-125 bps cuts in 2025, NCD yields of 9-10% offer a compelling spread over bank FDs (6-7%) and government securities (~6.5%). Retail investors, capped at higher coupons in reserved portions, stand to benefit most. Analysts rate the issue ‘Subscribe’ for conservative portfolios seeking predictable income.
CRISIL’s AA rating cites AEL’s diversified business, strong parentage, and improving cash flows, though noting execution risks in large-scale projects.
Market Reaction and Broader Implications
AEL shares rose 1.5% to ₹3,150 on the announcement day, reflecting positive sentiment. The issue could attract ₹2,000-3,000 crore in bids, given retail enthusiasm for high-yield corporate paper post-rate cuts.
This marks the Adani Group’s deepening retail debt market presence, following successful issues by entities like Adani Ports. It also signals maturing domestic bond markets, with public NCD volumes crossing ₹50,000 crore in 2025.
Conclusion
Adani Enterprises’ ₹1,000 crore NCD issue next week offers retail investors a rare chance to participate in India’s fastest-growing conglomerate at attractive yields. Backed by AA ratings and strategic growth plans, it promises steady returns amid economic recovery. As India marches toward $5 trillion GDP, such issuances bridge infrastructure funding gaps while democratizing corporate debt access. Investors should evaluate risk appetite and tax implications before subscribing. The bell rings on January 13 time to consider ringing in.
