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Muthoot Finance NCD Issue Nov 2014:


Muthoot Finance Limited – has come up with a public issue of – Secured & Unsecured ,Redeemable Non-convertible Debentures (NCDs) of face value of Rs.1000 each..aggregating to a total of up to Rs.400 crore.This issue will open for subscription on Nov 19, 2014 and will open for subscription till Dec 18, 2014.

Muthhot finance is the largest Gold Loan company with Gold loan book of more than 21,600 Crore as in March 2014.

Company have shown CAGR growth of more than 24% in loan under management since 2010.

Credit Rating : AA- By ICRA  which indicates higher safety of issue.

This issue offers different investment options like : Cumulative,Monthly interest and annual interest payout.

Monthly Interest Option:

WWW.SAVING-IDEAS.COM MUTHOOT FINANCE NCD NOV2014

 

Annual Interest Payment Option:

WWW.SAVING-IDEAS.COM MUTHOOT FINANCE NCD NOV 2014 ANNUAL INTEREST PAYMENT

Cumulative Option:

WWW.SAVING-IDEAS.COM MUTHOOT FINANCE NCD NOV 2014 CUMULATIVE OPTION

With Last option ,investors money will get exactly doubled but it is unsecured option and it will be categorized as tier-II debt of company.

Pl note: Investor need to apply in demat mode only for Cumulative Option.

Muthoot Profit Net Profit in Crores- After Tax and Depreciation:

Company’s net profit have grown with more than 26% CAGR since 2010.

dyerware.com

Company have reported Net profit of Rs.180 Crore and 170 crore for last two quarters of this financial year.

Muthoot Finance – is well established company with smart cumulative Growth last 05 years though gold prices have subdued…Still investors should have awareness about external factors like Gold prices,Regulations,growing competition from banks etc can affect company’s performance.

Issue offers better interest rates..especially considering lower interest rate scenario ahead and one can think to invest small part of fixed income portfolio in this issue.

 

 

10% IFCI NCD Issue Oct-2014:

IFCI Ltd has come up with -Public  Issue of Secured Non-Convertible Debentures – of face value of Rs.1000 each , up to Rs. 250 Crore with an option to retain over subscription up to shelf limit Rs. 2000 crore.

Govt Of India is major share holder in IFCI with Govt stake around 55%.

Imp Dates:

  1. Issue Open Date: Oct 20, 2014.
  2. Issue Close Date:Nov 21, 2014.

Interest Rates:

This issue offers different investment options Viz. Monthly interest option, Annual interest and cumulative.

Coupon rates indicated below are for HNIs (applying for more than 2 Lakh )and Retail individual Investors / HUFs (Applying for less than Rs. 2 Lakh)

Monthly Interest Option:

WWW.SAVING-IDEAS.COM - IFCI NCD ISSUE OCT 2014 MONTHLY INTEREST PAYMENT

 

One can check that for for monthly interest option available for 05 yrs tenure only at rate 9.92% per annum.

Please Note: Demat Account is compulsory for monthly interest option.

Annual Interest Option:

IFCI LTD NCD OCT 2014 ANNUAL INTEREST OPTIONCumulative Option:

IFCI NCD OCT2014 CUMULATIVE OPTION

 

Share Holding Pattern :

Current share holding pattern of IFCI is as follows:

IFCI SHARE HOLDING PATTERN

One can check Govt Of India being major share holder with 55.53% stake.As well LIC holds 3.73% and govt Pension funds holds 1.53% shares at IFCI.

Credit Rating:

ICRA “A”  and BrickWork AA-: both indicates medium safety of issue.

What are concerns of IFCI:

Higher Non Performing Assets & provisioning- Gross NPA is around 15% while Net NPA is around 10%.But at the same time company have shown good rise in net interest income in recent quarter.

IFCI being promoted by GOI ,10% interest rate for next 5-10 yrs can be a good bet considering reducing  interest rate scenario ahead.

11.75% SREI NCD Issue Sept 2014:

SREI Infrastructure Finance company – NCD Issue – Sept 2014:

SREI – Infrastructure Finance company -IFC Status – manages assets of more than 30,000 crore have come up with an NCD issue.

This issue will open on Sept 29 and will close on Oct 31, 2014.

Issue offers max interest of 11.75% for period of 60 months.

Security : Security cover will be provided by company through debenture trustees.

Interest Rate Structure:

coupon rate structure for Retail,Individual investors is as follows:

 

Series Tenure Coupon
Rate for Retail Investors % per annum
Interest
Payment frequency
I 2
YRS
11.25 Annual
II 2
YRS
11.25 Cumulative
III 2
YRS
11.50 Monthly
IV 3
YRS
11.50 Annual
V 3
YRS
11.51 Cumulative
VI 3
YRS
11.75 Monthly
VII 5
YRS
11.75 Annual
VIII 5
YRS
11.75 Cumulative

 

Credit Rating:

AA- by CARE and AA by Brickwork.Both indicates stable issue.

0.25% Extra for Existing NCD investors/Equity Shareholders /Sr.citizen:

Additional coupon of 0.25% p.a. for existing bondholders and/or equity shareholders of the company and/or senior citizens for Individual Category of investors on Deemed Date of Allotment.

So overall AA – issue offering 11.75% rate can be a good bet.But investors need to aware about credit risks and then invest small amount from fixed income portfolio.


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