Adani Enterprises NCD September 2024 – Overview
Adani Enterprises Limited has issued a secured NCD bond which is currently open for subscription. Adani Enterprises is part of the diversified Adani Group. Interest rates offered are up to 9.9%. Read this article to find out more. Adani Enterprises NCD Issued in September 2024We provide a complete review with details, dates and more on NCD.
About Adani Enterprises Limited
The company is part of the Adani Group, one of India’s leading corporates with an integrated energy infrastructure platform across India and a long track record of successfully executing large scale projects.
The company is one of India’s largest publicly listed business incubators by market capitalization and is driven by a philosophy of incubating businesses across four core industry sectors – Energy & Utilities, Transport & Logistics, Consumer and Primary Industries.
These companies effectively complement existing and developing businesses catering to Indian needs. Over the years, these companies have seeded new businesses in the Adani portfolio, developed them into large, self-sustaining verticals and then carved out into independently listed, scalable platforms, delivering value to shareholders.
The company has a proven track record in creating sustainable infrastructure businesses since 1993. It has emerged as an incubator by investing in various diversified businesses, maturing them and ultimately spinning them off. Since inception, the company has nurtured large, scalable businesses and has taken them public, including through spin-offs, as Adani Ports and Special Economic Zone Limited, Adani Power Limited, Adani Energy Solutions Limited, Adani Green Energy Limited, Adani Total Gas Limited and Adani Wilmar Limited. As of June 30, 2024, Adani’s portfolio has a market capitalization of INR 16.2 trillion (approximately US$ 194 billion), making it one of India’s largest listed groups by market capitalization.
Adani Enterprises NCD September 2024 Issue Details
| Application start date | September 4, 2024 |
| Subscription End Date | September 17, 2024 |
| Name of Issuer | Adani Enterprises Limited |
| Security Type | Secured Redeemable Non-Convertible Debentures (Secured NCDs) |
| Issue size (base) | 400.00 Crores |
| Issue size (option to hold oversubscribed amounts) | 400.00 Crores |
| Total Issue Amount | 800 billion rupees |
| Issue price | 1,000 per bond. |
| Face value | 1,000 per bond. |
| series | Series I to VIII |
| Minimum Lot Size | 10 bonds and then 1 bond |
| Tenure | 24, 36, 60 months |
| Interest payment frequency | Quarterly, annual, cumulative |
| Published in | Within 6 business days on BSE/NSE |
| Lead Manager | Trust Investment Advisors Private Limited AK Capital Services Limited Nuvama Wealth Management Limited |
| Bond Trustee | Catalyst Trusteeship Limited |
Adani Enterprises NCD September 2024 – Interest Rates
| series | I | II | III. | IV | Five | VI | Seven | Eight |
|---|---|---|---|---|---|---|---|---|
| Frequency of interest payments | Annual | Accumulation | Quarterly | Annual | Accumulation | Quarterly | Annual | Accumulation |
| Term of employment (months) | twenty four | twenty four | 36 | 36 | 36 | 60 | 60 | 60 |
| Coupon (annual interest rate) | 9.25% | N/A | 9.32% | 9.65% | N/A | 9.56% | 9.90% | N/A |
| Effective Yield (annual %) | 9.25% | 9.25% | 9.65% | 9.65% | 9.65% | 9.90% | 9.89% | 9.90% |
| Amount at maturity (Rupees) | 1,000.00 | 1,193.56 | 1,000.00 | 1,000.00 | 1,318.34 | 1,000.00 | 1,000.00 | 1,603.62 |
Adani Enterprises Limited Financial
- Adani Enterprises is part of the Adani Group, one of India’s largest business groups.
- The company has consistently demonstrated profit margin growth over the past few years, and investors should consider investing in companies with a track record of consistent growth.
- We offer high interest rates of up to 9.9%.
- We offer secured NCDs, which means that if the company faces financial distress and goes bankrupt for any reason, secured NCD investors will get priority in the repayment of their capital.
- The company’s NCDs are rated CARE A+/Positive by CARE Ratings.
Adani Enterprises NCD September 2024 – Risk Factors
- Some of Adani’s portfolio companies are currently subject to regulatory and adjudicatory proceedings and investigations by regulatory and statutory authorities in relation to allegations made in the short sellers’ report (Hindenburg Research). If Adani’s portfolio companies are found to have violated applicable laws, they may be subject to fines and regulatory action.
- If we are unable to manage our growth effectively, our business and results of operations may be adversely affected.
- One of the independent directors, Mr. V. Subramanian, has his name in CIBIL’s litigated accounts list. If his name appears on the wilful defaulters list, it may necessitate a reconstitution of the board of directors. Such an eventuality may have an adverse effect on the issue, its reputation and operations.
- The company’s integrated resource management business depends primarily on growing demand for imported coal in India and its ability to maintain a diversified supplier base.
- The Company’s mining services business depends on its ability to expand its customer base, and any failure to do so could adversely affect its business.
- In the past, investment in NCD bonds has become riskier as several companies have defaulted on loans, delayed interest payments and capital repayments. Adani Enterprises NCD September 24 RHP For all risk factors.
Adani Enterprises NCD September 2024 – Should You Invest or Avoid?
Adani Group’s flagship company, Adani Enterprises, is an incubator focused on setting up diversified start-up businesses.
The company’s NCD issuances come with attractive interest rates. The company has been consistently growing its profit margins. The issue is offering secured NCDs with low risk, although risk is not 100% eliminated. The company has a CARE A+/Positive credit rating with CARE Ratings Limited, which is considered a good rating, however, NCDs with AAA or AA credit ratings would be better.
On the downside, investors should not forget Hindenburg, a US research firm and short seller, which filed charges against Adani Group in early 2023, causing the group’s shares to fall sharply (and then recover), with the outcome still unclear.
Investors should consider both the pros and cons before investing in such NCDs.
Suresh KP is the Founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and NISM Certified Research Analyst. He has been involved in analyzing financial markets for the last 20 years. He can be reached at suresh@myinvestmentideas.com.
