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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.

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.

Updated Interest Rates Of Mahindra Financial Services,DHFL,Shriram Transport Deposits:

Following downward trend in Deposit rates few top most Non-Banking Finance Company have revised their deposit rates.

Mahindra & Mahindra Financial Services – part of M&M Group :Company have major penetration in Rural areas and have diversified client base from Retail to SMEs.Most of the analysts believes that this company have transition potential from mid cap to large cap.Mahindra Finance is currently offering max deposit rate of 10% for 36 months.Rest DHFL – Third largest Home loan providers with asset under management more than 46,000 Crores as on June 2014. STFC – Largest commercial Vehicle finance company-also reputed company.

Click Here To View Details of Mahindra Finance Deposit Rates.

Click Here To View Details of DHFL Deposit Rates.

Click Here To View Details of Shriram Transport – STFC Deposit Rates.


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