Adani Enterprises NCD – July 2025 Public Issue
Adani Enterprises Ltd (AEL), the flagship of the Adani Group, has launched its second public issue of secured Non‑Convertible Debentures (NCDs) in July 2025. Designed for retail and institutional investors seeking fixed income with competitive yields, this issue offers multiple options across tenures of 2, 3, and 5 years. Here is an in‑depth breakdown in clear, easy language—no recommendations, just plain details.
📅 Timeline & Size
| Parameter | Details |
|---|---|
| Open Date | 9 July 2025 |
| Close Date | 22 July 2025 |
| Base Issue Size | ₹500 crore |
| Overall Issue Size (with greenshoe) | ₹1,000 crore |
The issue opened on 9 July and remains open till 22 July, with the option to close early or extend. Retail minimum investment is ₹10,000 per application.
🧩 Why NCDs?
NCDs are fixed‑income instruments issued by companies to raise capital. "Non‑Convertible" means these cannot be converted into equity. Fixed interest payments are coupled with principal repayment at maturity.
These are secured NCDs, backed by company assets—offering more protection compared to unsecured bonds.
🔖 Credit Ratings
This issue carries strong credit ratings:
- CARE: AA‑ (Stable)
- ICRA: AA‑ (Stable)
These suggest a high level of safety and very low default risk :contentReference[oaicite:1]{index=1}.
📈 Interest Rates & Options
| Series | Tenor | Frequency | Coupon (%) | Effective Yield (%) | Maturity Value per ₹1,000 |
|---|---|---|---|---|---|
| I | 24 mo | Annual | 8.95 | 8.95 | ₹1,000 |
| II | 24 mo | Cumulative | ‑ | 8.95 | ₹1,187.01 |
| III | 36 mo | Quarterly | 8.85 | 9.14 | ₹1,000 |
| IV | 36 mo | Annual | 9.15 | 9.14 | ₹1,000 |
| V | 36 mo | Cumulative | ‑ | 9.15 | ₹1,300.70 |
| VI | 60 mo | Quarterly | 9.00 | 9.30 | ₹1,000 |
| VII | 60 mo | Annual | 9.30 | 9.29 | ₹1,000 |
| VIII | 60 mo | Cumulative | ‑ | 9.30 | ₹1,560.30 |
💰 Illustrative Earnings
- ₹10,000 in Series I: ₹895 interest annually.
- ₹10,000 in Series IV: ₹915 annually.
- ₹10,000 in Series VIII: ₹5,603 cumulative growth over 5 years.
🏦 Use of Funds
Minimum 75% proceeds will repay existing debt; remaining 25% will fund general business needs :contentReference[oaicite:3]{index=3}.
🛡️ Security & Collateral
The issue is secured, backed by assets. In default, asset liquidation helps meet investor claims.
📅 Key Dates & Procedure
| Step | Date/Detail |
|---|---|
| Open | 9 July 2025 |
| Close | 22 July 2025 |
| Allotment | Flow basis, first-come, first-served |
| Listing | On BSE & NSE |
| Lot Size | Minimum 10 NCDs (₹10,000) |
👥 Eligible Investors
Allocated as follows:
- Institutional (QIB): 10%
- Non‑institutional: 30%
- HNI: 30%
- Retail: 30%
Applications are handled in demat mode via lead managers and registrar :contentReference[oaicite:4]{index=4}.
🔍 Risks & Considerations
- Credit Risk: Low due to secured structure, but dependent on Adani’s business performance.
- Interest Rate Risk: Secondary market prices may drop if interest rates rise.
- Liquidity Risk: Tradable on BSE/NSE, but resale depends on active trading.
- Tax Treatment: Interest is taxable as per income slab.
📌 At‑a‑Glance Summary
- Issuer: Adani Enterprises Ltd
- NCD Type: Secured, listed, redeemable
- Tenures: 24, 36, 60 months
- Max Interest: Up to 9.30% p.a.
- Min Investment: ₹10,000
- Credit Rating: CARE & ICRA AA‑ (Stable)
- Base Size: ₹500 crore; Total up to ₹1,000 crore
🆚 Compared to April 2025 Issue
This NCD offers slightly lower coupons (around 30–60 bps less) than the previous debentures from last September, reflecting a softening interest rate environment :contentReference[oaicite:5]{index=5}.
❓ FAQs
- Is it safe? Rated AA‑ and secured, it’s high on safety but not risk-free.
- Can I sell before maturity? Yes, via BSE/NSE; price depends on market conditions.
- How is interest paid? Depending on series—annual, quarterly, or cumulative.
- Is interest tax-exempt? No; fully taxable.
🧭 Investor Checklist
- Note issue dates clearly.
- Choose series based on income needs and investment horizon.
- Apply early if liquidity is important.
- Track allotment and listing after close.
- Plan for tax on interest inflow.
📈 Visual Snapshot
✅ Final Takeaway
The July 2025 Adani Enterprises NCD series offers a credible fixed‑income option with competitive yields up to 9.30% p.a., backed by strong credit ratings and collateral security. It suits investors seeking structured income, willing to hold till maturity or trade in the secondary market. Ensure your pick aligns with your cash flow needs, tax bracket, and risk appetite.
Please double-check dates, rates, and your own financial context. This blog provides factual information only—not financial advice.
Posts
No comments:
Post a Comment