Adani Enterprises Ltd, the flagship company of the Adani Group, is gearing up for a significant foray into the debt market. The conglomerate plans to raise funds through a public issue of non-convertible debentures (NCDs), marking a strategic move to strengthen its financial structure.
Details of the NCD Offering
This will be the company's third NCD offering since it was incorporated back in 1993. The core issue size is set at Rs 1,000 crore, with an additional Rs 500 crore reserved as a greenshoe option. This means the total fundraising could potentially reach Rs 1,500 crore if investor demand is strong.
The subscription window for these bonds is scheduled to be open from January 6 to January 19. A notable feature of this issue is the dedicated allocation for individual investors, with 35% of the NCDs earmarked for retail participants.
Coupon Rates and Debt Reduction Plan
Adani Enterprises has announced attractive coupon rates to lure investors. The annual interest payouts will vary based on the tenure of the bonds chosen by investors.
- For the two-year NCDs, the coupon rate is 8.6% per annum.
- The three-year instruments will offer a slightly higher 8.75% per annum.
- The five-year NCDs come with the highest coupon of 8.9% per annum.
The primary objective behind this capital raise is clear: to reduce the company's substantial debt burden. As of September 2025, Adani Enterprises carries a debt exceeding Rs 70,000 crore. A significant portion of the fresh capital generated from this NCD issue will be directed towards paring down this liability.
Strategic Implications and Market Entry
This bond issue represents a calculated step by Adani Enterprises to manage its capital efficiently. By opting for debt instruments with fixed tenures and coupons, the company aims to lock in funds for a specific period while addressing its balance sheet leverage.
The decision to include a substantial portion for retail investors indicates a desire to broaden its investor base and tap into domestic savings. The entry into the bond market next week is being closely watched by analysts and investors alike, as it reflects the group's ongoing financial strategy and market confidence.
