Investment Plan- If you are looking for a better option for investment then you have a good opportunity. Adani Enterprises, the flagship company of the Adani Group, has planned to issue NCDs (non-convertible debentures) to raise funds. The company has said that it will raise Rs 1,000 crore through NCDs. The issue will open for investors on July 9 and close on July 22.
Key Takeaways
Quick Read- How much interest will you get
- Rating for NCDs
- Mode of issuance
- What is NCD?
How much interest will you get
Adani Enterprises’ NCD will fetch a maximum interest of 9.30% per annum. The maturity period of this NCD will be 24 months, 36 months and 60 months. That means investors will get 3 options, 2 years maturity, 3 years maturity and 5 years maturity. Interest can be taken quarterly, yearly or at once on maturity. These NCDs will be issued in a total of 8 types of series.
Rating for NCDs
This NCD has been rated “CARE AA-; Stable” and “[ICRA]AA-(Stable)”.
This means that this investment is considered safe and the company will be able to make payments on time.
Mode of issuance
Its base issue size is Rs 500 crore. While under the greenshoe option, if there is high demand, the company can also raise an additional Rs 500 crore, which will make the total amount Rs 1,000 crore. The price of one NCD is Rs 1,000. The minimum investment can be made in 10 NCDs i.e. a minimum of Rs 10,000.
What is NCD?
NCD is a means for companies to raise money from the market. Just like companies raise money through IPO, they also raise money through NCD. When a company raises money through NCD, it takes it as a loan. Therefore, the company has to pay interest on the loan taken. NCD has a fixed maturity date and investors get returns with a fixed interest rate. NCD cannot be converted into equity.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.
