Adani: The flagship business of the Adani Group, Adani Enterprises Limited (AEL), announced on Friday the start of its third public offering of Rs 1,000 crore in secured, rated, listed, redeemable, non-convertible debentures (NCDs), with an annual yield of up to 8.90 percent.

With the possibility of an early closing or extension, the issue will open on January 6 and expire on January 19. The face amount of each NCD is Rs 1,000.

A minimum of ten NCDs will be covered by each application, and after that, multiples of one NCD. According to AEL, the biggest listed company incubator in India by market capitalization, the minimum application size would be Rs 10,000.

The business said that the base size offering is Rs 500 crore, with the possibility of an oversubscription up to an extra Rs 500 crore (green shoe option), for a total issue size of Rs 1,000 crore.Our efforts to increase access to India’s financial markets and provide individual investors with a share in long-term infrastructure expansion have advanced with this third NCD offering. Adani Group’s Group CFO Jugeshinder “Robbie” Singh said, “We want to build on the strong response to our previous offerings, which reinforces trust in our strategy and financial discipline.”AEL continues to concentrate on developing companies that will drive India’s economic transformation as the incubator for the country’s next generation of infrastructure, from roads and airports to data centers and green hydrogen,” Singh said.

According to the company, at least 75% of the proceeds from the issuance will be used to pay off the debt that the company has taken out, either in full or in part, as well as any interest that may be associated with it. The remaining 25% will be used for general corporate purposes.

Launched in July of last year, AEL’s second NCD offering of Rs 1,000 crore was completely subscribed for in three hours on the first day.

The AEL NCD offering is timely for investors looking for secure, fixed-income options because of the recent rate reduction and a weaker interest rate cycle. With competitive returns when compared to fixed deposits and NCDs with comparable ratings, this public offering offers investors a worthwhile opportunity.

CARE Ratings Limited has rated the proposed NCDs as “Care AA-; Stable,” whereas ICRA Limited has assessed them as “[ICRA]AA- (Stable).” In terms of timely payment of debts, securities with this grade are regarded as having a high level of safety. The credit risk of such securities is quite minimal.

With choices for quarterly, yearly, and cumulative interest payments over eight series, the NCDs come in tenors of 24, 36, and 60 months.