Adani Power's NCD Success: A Beacon of Strength Amid Challenges

Adani Power has successfully raised Rs 7,500 crore through a non-convertible debenture issue, attracting major domestic investors despite current challenges. The funds will be used for refinancing and corporate purposes. Strong cash flows and contracts underpin investor confidence, with plans to expand capacity significantly by FY32.

In a significant financial maneuver, Adani Power has secured Rs 7,500 crore through an enthusiastic non-convertible debenture (NCD) issue. This successful fundraising effort drew in top-tier domestic investors including ICICI, Axis, and Kotak, reflecting the strong financial health and market confidence in the company.

Investors have shown keen interest, notably from mutual funds, banks, and other domestic institutions, signaling robust demand. Noteworthy investments came from SBI MF with Rs 2,500 crore, and ICICI and Axis banks committing significant sums, underscoring the institutional trust in Adani Power's long-term earnings visibility.

Proceeds aim to refinance existing borrowings and support corporate strategies. Analysts highlight Adani Power's secured long-term power purchase agreements, enhancing revenue predictability. The company stands firm with favorable debt ratios and anticipates tripling operating profit by FY30. Global agencies like Moody's and Fitch have maintained a stable outlook, focusing on the 'manageable' risk factors amidst ongoing US investigations.

(With inputs from agencies.)