Adani Group’s big announcement, will raise 150 crores from the Indian market, know how to buy company bonds
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Adani Group plans to raise Rs 150 crore from the Indian bond market. These bonds will be issued in the Indian market. According to media reports, the money collected from the bond will be used by Adani Group to meet the needs of capital expenditure. These bonds will be issued by the company in lots of five to ten billion. This will include both listed and unlisted bonds. The report of US-based short-seller Hindenburg Research had caused huge losses to the company. After the release of the report on January 24, there was a huge fall in the shares of the group. The shares of Adani Enterprise, the flagship company of the group, fell from around Rs 3,500 to close to Rs 1,000. In the report, serious allegations ranging from money laundering to share manipulation were made on the company. Since then, the preparations for bringing company bonds had started.
Adani trying to win back the trust of investors
Adani Group is trying to win the trust of investors by bringing bonds in the Indian market. According to media reports, the fund raising plans of the company will gain momentum in two months. Also, the amount raised from the bond can be twice the initial size. With these schemes, the aim of Adani Group is to win the trust of the investors. Adani Enterprises raised Rs 12.5 billion through the sale of Indian bonds early last month.
Gautam Adani attacked in AGM
Recently AGM of Adani Group was organized. In this AGM, the company’s chief Gautam Adani fiercely targeted the report of Hindenburg Research. Gautam Adani said that even after this report, the group’s FPO was fully subscribed, but it was decided to return their money to protect the interests of the investors. We immediately issued a comprehensive rebuttal, but some with vested interests tried to profit from the short-seller’s claims. They promoted false stories on various news and social media platforms. Its effect was also seen in the market. However, the Adani Group came out of the crisis. He told that the Supreme Court constituted an expert committee to look into the report of Hindenburg Research. The report of this committee was made public in May 2023. It was clear in the report of the expert committee that no regulatory failure was found in the group. The report not only observed that the mitigation measures taken by the company helped rebuild confidence, but also pointed out that there were credible allegations of targeted volatility of the Indian markets.
Adani Energy Solutions net profit up eight percent in Q1
The consolidated net profit of Adani Group company Adani Energy Solutions in the first (April-June) quarter of the current financial year increased by eight percent to Rs 181.98 crore. Its profit has increased mainly due to increase in revenue. Adani Energy Solutions was formerly known as Adani Transmission. The net profit of the company in the same period of the previous financial year was Rs 168.46 crore. The company informed the stock market that the total income of the company increased to Rs 3,772.25 crore in the quarter under review, compared to Rs 3,249.74 crore in the same period last year. Anil Sardana, Managing Director, Adani Energy Solutions, said that despite the challenging economic environment, the company’s growth has remained stable. Adani Transmission Limited (ATL) has been renamed as Adani Energy Solutions Limited (AESL) on 27 July 2023.
What is company bond
Company Bond (Corporate Bond) is a type of debt instrument that is issued by a company. It is an official journal in which the company raises the borrowed money and makes regular interest payments for its reimbursement. Those people who want to invest in the development or financial plans of the company can invest their capital through company bonds with reasonable interest amount. The main objective of a company bond is to raise funds from investors so that the company can obtain financial resources for its various projects.
The company issues many types of bonds
Many types of bonds are brought in the market by the companies. These are different types of company bonds in which investors get various options and opportunities to earn income. For investors, before investing in these bonds, they must thoroughly follow the terms and conditions, so that they can get good returns and ensure the safety of their investment. In Fixed Rate Bonds, the interest rate is fixed before the time of issue and is based on the stability of the currency. For example, a company may issue a 10-year fixed rate bond with an interest rate of 6% per annum. On the other hand, in Floating Rate Bond, the interest rate is reevaluated at regular intervals, which can change according to the changes in the market. In this, the interest rate can change continuously and it can be compared to the market rates to obtain or bench. A fixed margin rate can be attached. Whereas, in Zero Coupon Bond there are no regular interest payments, rather it is issued at a discount and is pegged to the asset value. The currency of this type of bond Borovish can be applied.
How to Invest in Company Bonds
Before investing in any company bond, study which company bond you should invest in. Before investing, understand the details of the company’s financial position, credit rating, interest rate offered by it, and mutual funds or financial restrictions. To invest in corporate bonds, you need to open a demat account. This account is required for you to buy and sell bonds. Before investing in corporate bonds, you need to decide the investment amount. You should decide the investment amount based on your financial goals and financial position. You can buy your selected company bonds through a demat account. For this you will need to deposit money in your demat account and then you can buy the bonds.
Keep an eye on the interest on the bond
After investing in Company Bonds, you will receive interest payments at regular intervals. Interest will be calculated automatically in your demat account. Also, you should monitor the progress of your investment from time to time. Bond prices can move inversely, which can increase or decrease the value of your investment. Please note that a bond investment is a financial investment and can be somewhat more volatile than financial market options. It would be advisable for you to consult your financial advisor and invest wisely before investing in Bonds.
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