Adani Enterprises to Raise up to ₹10 Billion via NCD Public Issue

Adani Enterprises Limited has filed a prospectus for a public issuance of secured, rated, listed, redeemable non-convertible debentures (NCDs) aggregating up to ₹10 billion. According to the regulatory filing, the company has structured the offering with a base issue size of ₹5 billion, alongside a green shoe option to retain oversubscription of up to an additional ₹5 billion.

According to the disclosure documents, the issue is scheduled to open on January 6 and close on January 19.

The prospectus details a structure of eight distinct series offering tenures of 24 months, 36 months, and 60 months. For the 24-month horizon, Series I delivers an annual interest payment at a coupon rate of 8.60% per annum, resulting in an effective yield of 8.60%. Series II provides a cumulative interest option for the same tenor, where the redemption amount is fixed at ₹1,179.40 per NCD, aligning with an effective yield of 8.60%.

The 36-month tenure includes three categories. Series III offers quarterly interest payments with a coupon rate of 8.48% per annum and an effective yield of 8.75%. Series IV offers annual interest payments with a coupon of 8.75% per annum and an effective yield of 8.74%. The filing notes that Series IV NCDs will be allocated to applicants who do not indicate a specific choice of series. Series V, the cumulative option, promises a redemption amount of ₹1,286.45 per unit, derived from an effective yield of 8.75%.

For the 60-month horizon, Series VI offers quarterly interest payments at a coupon of 8.62% per annum for an effective yield of 8.90%. Series VII provides an annual interest payout at a coupon of 8.90% per annum, with the filing listing the effective yield at 8.89%. Series VIII is the cumulative option for the five-year tenor, offering a redemption value of ₹1,531.95 per NCD, corresponding to an effective yield of 8.90%.

CARE Ratings Limited and ICRA Limited have assigned and reaffirmed ‘AA-’ ratings to the NCD issue, as stated in the filing.