High Yield |CARE & ICRA AA-/ Stable Outlook| Minimum Investment: 10k Only

 

Adani Enterprises Limited  is issuing the Non-Convertible Debentures. These NCDs are AA- rated with a Stable outlook by CARE. The NCDs are being issued in eight series: coupon ranges from 8.85% to 9.30% p.a. and different tenures of 24 months, 36 months, and 60 months. The NCDs are secured and redeemable in nature. 

Coupon rates and effective yield for each of the series 

Allocation Ratio

The allocation ratio is prepared based on norms laid down by SEBI. Before announcing the allocation ratio, the same has to be approved by SEBI.  Once the IPO subscription closes, applications will be divided into different categories. The category-wise allocation ratio is always decided and declared during the launch of the particular IPO. Considering the Allocation Ratio, units will be assigned to applicants. Refer to the chart to know the application ratio for Adani Enterprises Limited NCD-IPO. 

Investment Process for Adani Enterprises Limited NCD IPO

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Financial Overview

Snapshot stating the Revenue, Expenses, Net Worth and PAT (In crores)

Cash flow for last few years (In crores)

Cash flow refers to the movement of cash in and out of the business at a specific point in time. It represents the net balance of the cash movement.

• • *Cash flow from operating activities reflects the amount a company generates through its product of services.
  • **Cash flow from investing activities reflects cash generated and spent relating to investing activities, like purchase of assets, sales of securities etc.
  • ***Cash flow from financing activities gives an insight into the financial stability of a company to its investors. It reflects the net flows of cash that are used to fund the company.

Issue analysis

Pros 

• Attractive Coupon Rates:

              36-month option with 9.15% annual coupon.

              60-month cumulative option with effective yield of 9.30%.

• Secured & Rated Issue: NCDs rated CARE AA-/Stable and ICRA AA-/Stable, backed by adequate asset cover.
  
• Listed and Tradable: Enhanced liquidity as the NCDs are proposed to be listed on BSE/NSE.
  
• Diverse Business Exposure: Investors get exposure to India’s largest business incubator across high-growth verticals (airports, renewables, digital infra, etc.).

Cons

• High Capex Dependency: Massive capex planned (~₹1 lakh crore) may pressure cash flows if monetization delays occur.
  
• Regulatory Overhang: Any adverse outcome from SEBI or US investigations could dent investor sentiment.
  
• Project Risk: Simultaneous expansion across multiple businesses could lead to operational strain or delays.

Liquidity

• Adequate Liquidity: Cash & bank balances stood at ₹8,094 crore as of Dec 31, 2024.
• Debt Servicing Capability: Repayments over ₹5,000 crore in FY26 are expected to be met via operational cash flows and timely refinancing.
• Working Capital: Fund-based utilization remained moderate at ~40% for the 12 months ended Sep 2024

Ratio Analysis

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About Adani Enterprises Limited

Founded in 1993, Adani Enterprises Limited (AEL) is a pivotal player in India’s infrastructure and energy sectors, forming the backbone of the Adani Group’s diverse portfolio. As India’s largest listed business incubator, AEL focuses on four core areas: energy and utilities, transportation and logistics, consumer goods, and primary industries.

AEL’s strategic approach has led to the successful incubation and listing of six major companies, including Adani Ports, Adani Power, and Adani Green Energy. The company excels in developing innovative and sustainable infrastructure projects, such as green hydrogen production and advanced data centers. In transport and logistics, AEL manages key airports and road assets across India, while its consumer goods division drives growth through the Fortune brand and the upcoming ‘Adani One’ super-app.

Strengths

• Diverse Incubation Success: AEL has successfully incubated and listed businesses like Adani Ports, Adani Green, Adani Wilmar, Adani Power, etc., demonstrating proven value creation for shareholders.

• Market Leadership: It is the largest coal trading operator in India with over 30% share in thermal coal imports, and meets 4-8% of India’s coal demand.

• Airport Operations: Operates 8 airports, with 19% YoY growth in FY24 passenger traffic. Revenue to rise with Navi Mumbai International Airport’s expected operations from FY26.

• Strong Growth in ANIL Segment: ANIL’s operating income grew from ₹3,567 crore in FY23 to ₹14,236 crore in FY25, with EBITDA margins expanding from 11.5% to 33.6%.

• Successful Fundraising: Promoters infused ₹7,878 crore in FY25; raised ₹4,200 crore via QIP.
• Asset Monetization Visibility: Expected ₹14,200 crore cash inflow from stake sale in AWL by FY26.

Weakness

• Execution Risk in New Ventures: AEL plans ₹1 lakh crore capex till FY27, across multiple sectors, where it has limited operational experience (e.g., copper smelting, green hydrogen, PVC).
  Regulatory Investigations: Ongoing probes by SEBI, DOJ, and SEC pose a reputational and financial risk. One SEBI investigation is pending conclusion.
• Environmental Exposure: Significant exposure to mining and coal raises ESG-related risks and future compliance costs

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Source- Prospectus June 30, 2025

Disclaimer – The information is published as on date 04/07/2024 based on information available on Prospectus June 30, 2025. The information may be subject to change in case of change in terms of prospectus or any other reason as the case maybe. Contents which are exclusively for educational information/knowledge sharing on capital market concepts and has no influence the investment/sale decisions of any investors