Muthoot Finance NCD: There is volatility in the market, which is causing loss in equity. The returns in Small Savings Scheme are very less. In such a situation, if you are looking for a better option for investment, then today is a good opportunity. The Secured Readable Non Convertible Debentures (NCD) of Muthoot Finance has been opened for investment from today i.e. 25th May. It will be open for investment till June 17. The size of this non convertible debenture will be Rs 300 crore. It has a base size of Rs 75 crore and has an option to raise Rs 225 crore through oversubscription. In this, a maximum of 8 percent annual return will be given in different options.
NCD Rating
The secured NCDs of Muthoot Finance have got AA+ (Stable) rating from ICRA. That is, the credit risk is low but not completely safe either. This rating means that this NCD has a high level of safety in terms of timely fulfillment of financial obligations. However, even after a better rating, it does not mean that it is a completely safe investment option.
how much interest is getting
There are 7 different investment options in Muthoot Finance secured NCDs. In which there is facility of interest payment on monthly, annual or on completion of maturity. That is, in this you can choose to get interest annually, monthly or together. In different options, 7.5 percent to 8 percent annual interest is being given. That is, 1.5 to 2 percent more interest than banks’ FDs.
how much to invest
The issue price of an NCD is Rs 1000. Investors will have to invest at least 10 NCDs. That is, at least Rs 10,000. After this, you can invest money in the multiple of 1.
The funds raised through this issue will be primarily used for the company’s lending activities. The lead manager of the issue is AK Capital Services Limited. IDBI Trusteeship Services Limited is the Debenture Trustee for the issue. Link Intime India Private Limited is the registrar for the issue.
What is NCD
Non-convertible debentures ie NCDs are financial instruments. These are issued by the company. Through these, she raises money from investors. For this a public issue is brought. Those investing in them get interest at a fixed rate. The tenure of NCDs is fixed. On their maturity, investors get their principal amount along with interest. These are debt instruments like bank FDs.
Secured NCD means the security of the company in it. If the company is unable to pay the investors money due to any reason, then the investors can withdraw their money by selling its assets. In unsecured NCDs, there is no security of the company. There is more risk in this.
(Disclaimer: Investment advice is not given here. This is only information about the company’s NCDs. Before investing in any NCD, you can consult the advisor.)
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