Adani Enterprises is offering 8 series of NCDs with various maturities of 24, 36, and 60 months. These NCDs are offering with effective yield of 9.25% to 9.90%.
Adani Enterprises Limited, the leading company of the Adani Group, initiated its inaugural public offering of secured non-convertible debentures (NCDs) on September 4, and is currently experiencing strong interest from retail investors.
What are debentures?
Debentures are nothing but you are lending the money to the company. In return, the company is promising you the interest rate and return of principal at the specified time period. Then what is the difference between debentures and bonds?
In the case of India, the difference between bonds and debentures are same. However, there are slight differences only the reasons for which companies borrow money from us (investors). Usually, bonds are meant for long-term company borrowing. However, debentures are meant for meeting short-term company…