Adani Enterprises NCD Sep-2024 – Issue Details and Review

Adani Enterprises NCD Sep-2024 – Introduction
Adani Enterprises Limited has come up with secured NCD bonds that have opened for subscription now. Adani Enterprises is part of Adani Group which has diversified businesses. The interest rates offered are up to 9.9%. This article will provide some insights into Adani Enterprises NCD Sep-2024 issue, including NCD details, dates, and provide complete review.

About Adani Enterprises Limited
They are  part  of  the  Adani group,  which  is  among India’s top business houses with  an  integrated  energy  and  infrastructure platform in India  and a  long track record of successfully executing large-scale  projects.

They are one of India’s largest listed business incubators in terms of market capitalisation andare driven by the philosophy of incubating businesses in four core industry sectors –energy and utility, transportation and logistics, consumer, and primary industry.
They represent an effective complement of established and developing businesses which address the needs of India. They have, over the years, seeded new business interests for the Adani portfolio, developed them into sizeable and self-sustaining business verticals and subsequently demerged them into independently listed and scalable platforms, thereby unlocking value for its shareholders.
They have  a  demonstrated  track  record  of  creating  sustainable infrastructure  businesses  since  1993.  They have emerged as an incubator by investing, maturing and eventually demerging various diversified businesses. Since inception, they  have incubated sizeable and scalable businesses and successfully listed them, including by way of demergers, as Adani Ports and Special Economic Zone Limited, Adani Power Limited, Adani Energy Solutions Limited, Adani Green Energy Limited, Adani Total Gas Limitedand Adani Wilmar Limited. As of June 30, 2024, the Adani portfoliohad a market capitalisation of ₹16,200 billion (approximately US$194 billion) and are one of the largest listed group by market capitalization in India
Adani Enterprises NCD Sep-2024 issue Details

Subscription opening Date
04-Sep-24

Subscription closure Date
17-Sep-24

Issuing Security Name
Adani Enterprises Limited

Security Type
Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)

Issue Size (Base)
Rs 400.00 Crores

Issue Size (Option to retain over subscription)
Rs 400.00 Crores

Total issue size
Rs 800 Crores

Issue price
Rs 1,000 per bond

Face value
Rs 1,000 per bond

Series
Series I to VIII

Minimum Lot size
10 bonds and 1 bond there after

Tenure
24, 36, and 60 Months

Interest Payment frequency
Quarterly, Annual and Cumulative

Listing on
Within 6 working days on BSE/NSE

Lead Manager
Trust Investment Advisors Private LimitedA.K. Capital Services LimitedNuvama Wealth Management Limited

Debenture Trustee/s
Catalyst Trusteeship Limited

Adani Enterprises NCD Sep-2024 – Interest Rates

Series
I
II
III
IV
V
VI
VII
VIII

Frequency of Interest Payment
Annual
Cumulative
Quarterly
Annual
Cumulative
Quarterly
Annual
Cumulative

Tenure (Months)
24
24
36
36
36
60
60
60

Coupon (% per Annum)
9.25%
NA
9.32%
9.65%
NA
9.56%
9.90%
NA

Effective Yield (% per Annum)
9.25%
9.25%
9.65%
9.65%
9.65%
9.90%
9.89%
9.90%

Amount on Maturity (In Rs.)
1,000.00
1,193.56
1,000.00
1,000.00
1,318.34
1,000.00
1,000.00
1,603.62

Financials of Adani Enterprises Limited
Adani Enterprises NCD Sep-2024 – Why should you invest?

Adani Enterprises is part of Adani Group which is the one of the largest business group in India.
The company has consistently shown margin growth in the past. Investors should consider investing in a company with a consistent growth record.
It offers a high-interest rate of up to 9.9%.
The company offers secured NCDs. In case the company faces a financial crisis and winds up for some reason, secured NCD investors would receive preference in the repayment of the capital.
Company NCDs hve been rated as CARE A+/Positive by CARE Ratings.

Adani Enterprises NCD Sep-2024 – Risk Factors

Certain Adani portfolio entities are currently subject to regulatory and adjudication proceedings and investigation by regulatory and statutory authorities in relation to the allegations made in a short seller’s report (Hindenburg Research). If the Adani portfolio entities are found to be in breach of applicable laws, they may be subject to penalties and regulatory action.
If they are not able to successfully manage its growth, its business and results of operations may get adversely impacted.
One of the Independent Directors, V. Subramanian, has been named in the CIBIL suit filed accounts list. In the event his name features in the wilful defaulter list, they may be required to reconstitute its Board. Any such event may result in an adverse impact on the Issue, its reputation and operations.
Its integrated resources management business primarily depends on an increasing demand for imported coal in India and its ability to maintain a diverse supplier base.
Its mining services business depends on its ability to increase in its customer base and its failure to do so may adversely impact its operations.
Investing in NCD bonds turned riskier in the past as there were defaults and delays in the payment of interest and repayment of capital by several companies. Investors should go through Adani Enterprises NCD Sep-24 RHP for all risk factors.

Adani Enterprises NCD Sep-2024 – Should you invest or avoid?
Adani Enterprises Ltd, the flagship entity of Adani Group, is an incubator focusing on establishing diverse new businesses.
Its NCD issue comes with attractive interest rates. The company has consistent growth in margins. In this issue, they are offering secured NCDs, which have lower risk while the risk is not 100% eliminated. Company has credit rating of CARE A +/Positive by CARE Ratings Limited which is considered to be a good rating while AAA or AA credit rating NCDs would have been better.
On the negative side, investors should not forget about Hindenberg (one of the US research company and short seller), who made allegations against the Adani group earlier in 2023 and its group shares have fallen significantly (recovered after that) which is yet to be concluded.
Investors need to review both pros and cons before investing in such NCD’s.

Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified – Investment Adviser and NISM Certified – Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com Latest posts by Suresh KP (see all)