Top investors including ICICI, Axis & Tata line up for Adani Power’s largest onshore bond issue

New Delhi: Adani Power raised Rs 7,500 crore through a non-convertible debenture (NCD) issue that saw several leading domestic investors, including ICICI, Axis, Kotak, Nippon, Tata and Invesco, line up to participate, people familiar with the matter said.

Interest in the offering has come from a broad mix of mutual funds, banks, insurers and other domestic institutions, with 17 institutions participating.

Mutual funds are likely to have accounted for the bulk of the demand, the people said.

SBI MF invested Rs 2,500 crore, ICICI Bank Rs 1,100 crore, Axis Bank Rs 1,000 crore, while Kotak MF and ICICI MF committed around Rs 500-600 crore each.

“The business remains fundamentally strong, and operations have not been impacted by recent developments,” one investor said on condition of anonymity. Another investor said the developments were “unlikely to cause any material damage to the company or the group”.

Proceeds from the non-convertible debenture issue are likely to be used for refinancing existing borrowings and general corporate purposes.

Market participants said investor appetite is being supported by Adani Power’s strong and visible cash flows.

Nearly 90 per cent of the company’s operating capacity is contracted under long-term power purchase agreements (PPAs), providing earnings and revenue visibility.

Improved fuel sourcing, smoother logistics and more stable utilisation levels have also translated into stronger cash generation.

Adani Power, India’s largest private thermal power producer, operates around 18 GW of capacity and plans to expand this to 42 GW by FY32.