Adani Group Strikes Goldmine! Adani Enterprises' NCDs Oversubscribed By 438% On Day 1; Offers 8.90% Rate

Adani Group strikes goldmine with its newly launched secured, strong-rated, listed and redeemable non-convertible debentures (NCDs). The ports-to-power conglomerate's flagship, Adani Enterprises, launched its Rs 1,000 crore worth of NCDs on January 6, witnessed impressive demand across investor categories. In just 45 minutes of the opening day, the NCDs had fully subscribed. By the end of Day 1 of bidding window, Adani Enterprises recorded more than 438% cumulative bids against its total issue size of NCDs. The subscription window will close on January 19.

Adani Enterprises NCDs Subscription Day 1:

As per BSE data, the public issue saw bids of 2,19,17,060 NCDs compared to its offered size of 50,00,000 NCDs. This leads to 438.34% oversubscription.

The mega company launched Rs 1,000 crore NCDs on January 6, which comprises a base issue of Rs 500 crore and a green shoe option of Rs 500 crore. These NCDs have strong rating of 'AA-' and 'Stable' outlook by leading credit agencies like ICRA and CARE Edge.

Bidders can apply for a minimum of 10 non-convertible debentures and in multiples of 1 NCD thereafter. Hence, the minimum application size comes around Rs 10,000. The face value is Rs 1,000 each.

Nuvama Wealth Management Limited, Trust Investment Advisors Private Limited and Tipsons Consultancy Services Private Limited are the lead managers to the issue.

What makes Adani Enterprises NCDs special?

Amidst sharp rate cut cycle and softer interest rates, Adani Enterprises offers an opportunity for retail investors to gain maximum profit on its NCDs, which have low credit risk, high degree of safety, offers competitive yields and fixed-income avenues. This is far better than traditional fixed deposits offered by banks and any other related NCDs.

The NCDs are available in tenures of 24 months, 36 months, and 60 months with quarterly, annual, and cumulative interest payment options across eight series.

For a 24-month tenure, the rate is 8.60% per annum. But for a 36-month tenure, the rate is 8.48% on a quarterly basis and 8.75% on an annual basis. In the case of a 60-month maturity period, the rate of interest comes at an impressive 8.62% per quarter and 8.90% per annum.

Adani Enterprises Share Price

On the first day of NCDs issue, Adani Enterprises' share price floated between intraday high and low of Rs 2290.15 apiece and Rs 2248.65 apiece respectively. After closing bell, however, the large-cap stock ended at Rs 2258.80 apiece on BSE, down by 0.90% with a market cap of Rs 2,60,706.34 crore.

In the long term, Adani Enterprises has seen significant surge on exchanges. On BSE, the 5-year performance of Adani Enterprises stock is a whopping 350.43% upside.

BUY Adani Enterprises Stock?

The consensus recommendation from 2 analysts for Adani Enterprises is STRONG BUY, as per Trendlyne data. The average target price is at Rs 2965.00 apiece, which signals at over 31% potential upside ahead. In November last year, Ventura Securities has set a target price of Rs 3,433 apiece on Adani Enterprises with BUY rating, which signals at nearly 52% potential upside.

About Adani Enterprises:

Adani Enterprises Limited (AEL) is the flagship company of Adani Group, one of India's largest business organisations. Over the years, Adani Enterprises has focused on building emerging infrastructure businesses, contributing to nation-building and divesting them into separate listed entities. Having successfully built sizeable and scalable businesses like Adani Ports & SEZ, Adani Energy Solutions, Adani Power, Adani Green Energy, Adani Total Gas and Adani Wilmar, the company has contributed to make India self-reliant with our robust businesses. This has also led to significant returns to our shareholders for three decades.

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