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DSK NCD August 2014 To Open Aug04,2014:


DS Kulkarni  - DSK Developers – NCD Issue August 2014 .

Company will raise Rs.100 crore with option to retain over subscription of same amount – total aggregating Rs.200 crore.

DSK is listed at both NSE and BSE with current market cap at about 177 crore and networth about 501 crore.

Imp Date:

  1. Issue Open Date: August 04, 2014.
  2. Issue Close Date:August 26, 2014.

Security :company will provide security cover in term of Land – covering principal and interest amount at any point of time by creating charge in favor of debenture trustees.

This issue offers different interest payment frequencies like – Monthly,Quarterly,Annually and Cumulative.

Monthly Interest Option:

saving-ideas.com - DSK  NCD Monthly Interest Payment Option

In this option interest payment frequency will be monthly and Tenure will be 84 months.Coupon  rate for General public is 12.75% and 13% for other investors like DSK employees,Senior Citizens,Equity holders,Women investors ,Servicemen ,Ex-servicemen.

Quarterly Interest Option:

WWW.SAVING-IDEAS.COM - DSK NCD QUARTERLY INTEREST OPTION

Tenure:36 Months.

Coupon Rate For General Public: 12.50%

Rate For other preferred investors:12.75%.

Annual Interest Option:

WWW.SAVING-IDEAS.COM -DSK NCD ANNUAL INTEREST PAYMENT

Tenure:72 Months.

Coupon Rates:12.65%

Rate for other preferred investors: 12.90%

Cumulative option:

Principal and interest payable at maturity with yield of 13.43% CAGR.Redemption amount will be exactly doubled for this option after 66 months.

Profit of company since last 05 Yrs:

DSK ANNUAL PROFIT HISTORY

Is Premature withdrawal Possible:

There is no call -put option available.so neither company nor investor would have exit except maturity.Investors who have opted for physical mode will not have any exit option except maturity.For demat mode,NCDs are tradable at BSE and can be sold online if buyer is available for the same.

Credit Rating : BBB+ Which indicates medium safety of issue.

Credit rating is generally decided based on past,present and future fundamentals of company.Whole real estate sector have went through trouble since last few years.DSK is well known trusted company and I think there won’t be trouble if one invests small amount in this issue.

 

07-Imp Share Market Tips:

Since market have turned bullish..its obvious for common peoples to get attracted towards stock market .Today we have listed few simple share market tips:

  1. Invest In Scalable Businesses:Don’t mere invest in stocks but invest in businesses which are scalable. One may need to do some home work to identify such companies who have good development prospects and there is no short cut.
  2. Invest in comany having Ethical and Honest management: Check who is managing company and their history.Invest in company who have ethical and honest management.
  3. Don’t listen to your neighbor: Your neighbor will  speak to you about his good stocks only.Remember that every investor carries good as well as bad stocks.so don’t  listen to your neighbor.
  4. Don’t Join share market classes:Share market can be learnt by experience only.It can’t be learnt in class room.So avoid wasting time and money learning it in class room.
  5. Invest through Equity Mutual funds:Risk management can be better through mutual funds so take route of equity mutual funds.
  6. Invest in cash market: In long term its always difficult to make money through speculation.Derivatives like Futures and options are for short term speculators and need to be avoided.
  7. Invest in cash rich and zero debt companies:There are number of companies in market which are rich in cash and have minimal debt.If any company is paying huge interest on debt then it has negative impact on profitability,balance sheet and stock price.

So start investing in equity today with proper information and start gaining dividends on your investment.

Which Is The Best Investment Option For Investing Money For Short Term Like 50 Days:

One of the reader of this blog have cash of around Rs.25 Lakh in his bank account .He will need this money after couple of months and till he wish to invest some where to get some optimum returns -more than 4% offered by general saving account.

Since he need money after couple of months we will consider period of 50 days only as we need to keep some allowance period.

No Equity or long term Debt funds:

First suggestion will of course don’t think for any equity or long term debt – income funds.As period of 50 days is too small and one should not think for volatile asset for such a short period.

Bank Short Term Deposits:

My first preference will be for short term deposit of tenure 50 days with my bank where my saving account is.Short term deposits are currently attracting deposit rate of 6-8% per annum basis and I should not expect much more beyond this.

Fixed Deposit rates – 50Days:

Deposit rates of few leading PSU and private banks are as follow

Short Term Deposit Rates - 50 Days

 

 Liquid Funds:

Liquid funds can be another option.As per current scenario… liquid funds can offer returns of 8.50-9.5% per annum basis.But one need to complete KYC formalities(if not current investor) and may need to gather some information or may need to take  guidance from some one.

BEST LIQUID FUNDS FOR SHORT TERM INVESTMENT

Saving Account with higher interest rate:

Few banks are offering interest rates up to 7% on saving account.List includes banks like Kotak Mahindra or YES Bank…but it may not be feasible to open the account if there are not major cash flows in this account.

so from my point of view..few above mentioned options are available for short term investment purpose..suggestions are wel-come if any..

 


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