High Yield |CARE A+/ Positive Outlook| Minimum Investment: 10k Only

 

Bond overview

Adani Enterprises Limited  is issuing the Non-Convertible Debentures. These NCDs are A+ rated with a positive outlook by CARE. The NCDs are being issued in eight series: coupon ranges from 9.25% to 9.90% 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

You can invest in IPOs via GoldenPi in 3 easy steps.

If the investment amount is less than & up to 10 lakhs, retail investors can apply for an IPO online.

If the investment amount is more than 10 Lakhs. 

Issue analysis

Pros 

• The yield offered is up to 9.9% which is much higher than many traditional fixed-income investments like FDs.
• The company has adequate Capital Adequacy Ratio in order to overcome unexpected losses during the year.

Cons

• The ratings of the company is  A+/Positive by CARE which is a slightly lower grade rating.
• The company is prone to regulatory risk associated with RBI and other regulators as well.

Liquidity

Adani Enterprises Limited   has a strong liquidity profile with unencumbered cash and liquid investments of 68.08 Crores as of 31st March,2024. The upcoming public issuance of NCDs in July 2024 is expected to further enhance its liquidity profile.

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.

Ratio Analysis

To get better returns than Bank FDs, invest in NCD-IPOs online. 

 

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 Business Incubation: Adani Enterprises has a proven track record as a business incubator, having successfully incubated and developed a wide range of infrastructure businesses in India, including energy, logistics, and consumer sectors.
• Successful Demergers and Value Creation: The company has a history of incubating businesses, developing them into significant entities, and subsequently demerging them into independently listed platforms, which has unlocked considerable value for shareholders.
• Expertise in Project Execution: Adani Enterprises has extensive experience and expertise in project execution, supported by its multi-decade managerial experience and effective project management team, ensuring timely and cost-efficient project delivery.
• Large-Scale Infrastructure Projects: The company’s portfolio includes large-scale and strategically located infrastructure assets, such as major airports, which are well-positioned to benefit from India’s economic growth and increasing air traffic.

Weakness

• High Dependence on Infrastructure Projects: The company’s heavy reliance on large-scale infrastructure projects makes it vulnerable to delays, cost overruns, and execution risks, which could impact its overall performance.
• Debt Management: The extensive capital requirements for infrastructure and energy projects can lead to high levels of debt, posing risks related to financial stability and liquidity.

Invest in Bond IPO online in just 5 minutes

Source- Prospectus August 27, 2024

Disclaimer – The information is published as on date 09/03/2024 based on information available on Prospectus August 27, 2024. 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