Adani Enterprises NCDs: A High-Yield, Secured Investment Opportunity
Adani Enterprises Limited (AEL) has announced a public issue of secured, redeemable Non-Convertible Debentures (NCDs) worth ₹1,000 crore, offering attractive interest rates up to 9.3% per annum.
With the issue opening on July 9, 2025, investors are evaluating whether this fits their portfolio. Here’s a detailed analysis to help you decide.
Key Features of Adani Enterprises NCDs
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Issue Details:
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Face Value: ₹1,000 per NCD
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Base Issue Size: ₹500 crore (with a ₹500 crore greenshoe option).
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Credit Rating: AA-/Stable by CARE & ICRA (moderate safety).
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Security Cover: 1.10X, implying lower risk of default.
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Tenure & Returns:
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Short-Term (24 months): 8.95% p.a. (annual payout) or 8.95% effective yield (cumulative).
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Medium-Term (36–60 months): Up to 9.3% p.a. (highest for 60-month annual option).
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Redemption Value: Cumulative options offer ₹1,560.29 per NCD after 5 years.
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Allocation:
- 30% reserved for retail investors, 30% for HNIs.
Why Consider Adani NCDs?
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Higher Returns: Beats most bank FDs (currently 6–7.5% p.a.) and government bonds.
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Secured Instrument: Backed by AEL’s assets, reducing default risk.
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Diversified Business: AEL operates in airports, green energy, mining, and logistics, ensuring stable cash flows.
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Strong Financials: FY25 profit rose to ₹6,053 crore (up 113% YoY), with EBITDA at ₹8,067 crore.
Risks to Evaluate
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Sectoral Exposure: AEL’s revenue from coal mining and airports is tied to regulatory and commodity risks.
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Leverage: Debt-to-equity ratio rose to 0.47 in FY25 (from 0.21 in FY23), though still manageable.
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Interest Rate Risk: If RBI hikes rates, newer NCDs may offer better returns.
Who Should Invest?
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Conservative Investors: Preferring secured, fixed-income instruments over equities.
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High-Income Earners: Seeking tax-efficient returns (indexation benefits apply for long-term holdings).
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Portfolio Diversifiers: Allocating 10–20% to corporate debt for stability.
Avoid If: You seek liquidity (NCDs trade on exchanges but may have low volumes) or higher capital appreciation (equities may suit better).
How to Apply?
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Dates: July 9–22, 2025.
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Minimum Investment: ₹10,000 (10 NCDs).
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Process: Contact Meta Investment for complete online application process and pre-book your application.
Final Verdict
Adani’s NCDs are a moderate-risk, high-reward option for investors comfortable with AA- ratings and Adani Group’s growth trajectory. With a 9.3% yield, they outperform traditional fixed deposits, but weigh the risks against your financial goals.
Pro Tip: Compare with similar-rated NCDs (e.g., L&T Finance, Tata Capital) and consult a financial advisor.
Disclaimer: This is not investment advice. Read the prospectus and assess risks before investing.
Explore More: Adani Enterprises NCD Prospectus - SEBI Guidelines
Adani Enterprises Limited (AEL) is issuing secured, redeemable Non-Convertible Debentures (NCDs) with face value ₹1,000 each. These are fixed-income instruments offering 8.95% to 9.3% annual returns, with tenures ranging from 2 to 5 years.
The NCDs are rated AA-/Stable by CARE Ratings and ICRA, indicating moderate safety with a low risk of default.
Secured: Backed by AEL’s assets (1.10X security cover). Stable issuer: Adani Enterprises has diversified businesses (airports, green energy, mining). Strong financials: Profit doubled to ₹6,053 crore in FY25.
Annual payout (e.g., 9.3% for 60-month Series VII). Quarterly payout (e.g., 9.0% for 60-month Series VI). Cumulative option (interest compounded; redeemed at maturity).
₹10,000 (10 NCDs) and in multiples of ₹1,000 thereafter.
Yes, they will be listed on BSE and MSE, providing liquidity. However, secondary market trading may have low volumes.
Interest income is taxable as per your income slab. Capital gains: Short-term (≤ 2 years): 20%. Long-term (< 3 years): 12.5%.
Risk-averse investors seeking higher returns than FDs. High-net-worth individuals (HNIs) looking for fixed-income diversification. Retail investors with a 3-5 year horizon.
Better than FDs: Higher yield (9.3% vs. 6-7.5% in banks). Riskier than govt bonds: But offers better returns. Alternative: Compare with similar-rated NCDs (e.g., Edelweiss, L&T, Tata Capital).
