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Adani Enterprises’ Rs 400 Cr NCD Issue Oversubscribed by 221% – Is This the Right Time to Invest?

Adani Enterprises’ Rs 400 crore public issue of non-convertible debentures (NCDs) was oversubscribed by 221% on the second day, mainly due to high interest from retail investors. The NCDs offer an annual yield between 9.25% and 9.90%. The issue, which opened on Wednesday, will close on September 17.

Vishal Goenka, Co-Founder of IndiaBonds.com, mentioned that the strong demand is due to Adani Enterprises’ well-known reputation, making it an attractive option for investors. This is the first non-financial public bond issue this financial year. The NCD offers both 3-year and 5-year options, which many investors find appealing, especially with expected interest rate cuts in the coming months.

The NCDs are rated CARE A+ with a Positive Outlook by CARE Ratings Limited. The debentures come with different tenures, including 24 months, 36 months, and 60 months. There are options for quarterly, cumulative, and annual interest payments across eight series.

Adani Enterprises announced that they are offering up to 80 lakh debentures, each with a face value of Rs 1,000. The base issue size is Rs 400 crore, with an option to retain additional subscriptions up to Rs 400 crore (Green Shoe Option), bringing the total issue size to Rs 800 crore.

The minimum investment is Rs 10,000 (10 NCDs) across any series, with additional investments in multiples of Rs 1,000 (1 NCD). The funds raised will primarily be used to repay or prepay existing debts (at least 75%) and for general corporate purposes (up to 25%).

The issue is being managed by Trust Investment Advisors Private Limited, A.K. Capital Services Limited, and Nuvama Wealth Management Limited.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

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