These bonds are issued by the Reserve Bank of India on behalf of the Govt. One such investment available to the Indian investors is RBI’s 7.35% Floating Rate Saving Bonds (FRSBs). It is even better if the interest rates earned on these investments are higher than some of the other investment options which are not as safe and secured as these investments are. He can be reached at often seek safe-havens for their hard earned money, and nothing could be more safe than the securities which are issued by the government or the central bank of a country. This post is written by Shiv Kukreja, who is a Certified Financial Planner and runs a financial planning firm, Ojas Capital in Delhi/NCR. For bidding of your application, any further info or to invest in IIFL Finance NCDs, you can contact us at +91-9811797407 ![]() Note: As per SEBI guidelines, ‘Bidding’ is mandatory before banking the application form, else the application is liable to get rejected. 5,000, TDS 10% will be deducted.Īpplication Form of India Infoline Finance Limited NCDs So, if rematerialised and held in physical form after the allotment, and if the annual interest income is more than Rs. However, as the interest income is taxable, you are supposed to disclose it while filing your ITR.īut, in case you decide to close your demat account, you can get these NCDs rematerialised. No TDS – As it is mandatory to have a demat account to apply and get these NCDs allotted, no tax would get deducted at source on the interest payments. Though there is no option of a premature redemption, the investors can always sell these NCDs on either of the stock exchanges. The listing will take place within 6 working days after the issue gets closed. Listing, Premature Withdrawal – These NCDs are proposed to be listed on both the stock exchanges, Bombay Stock Exchange (BSE) as well as National Stock Exchange (NSE). Minimum Investment – An investor needs to invest a minimum of Rs. on the date of oversubscription, the allotment will be made on a proportionate basis to all the applicants of that day on which it gets oversubscribed. NRIs Not Allowed – Non-Resident Indians (NRIs), foreign nationals and qualified foreign investors (QFIs) among others are not eligible to invest in this issue.Īllotment on First-Come First-Served Basis – Subject to the allocation ratio, allotment will be made on a first-come first-served basis, as well as on a date priority basis, i.e. 400 croreĬategory IV – Resident Individual Investors (RIIs) including HUFs – 40% of the issue is reserved i.e. 100 croreĬategory III – High Net Worth Individual Investors (HNIs) including HUFs – 40% of the issue is reserved i.e. 100 croreĬategory II – Non-Institutional Investors (NIIs) – 10% of the issue is reserved i.e. Moreover, these NCDs would be ‘Secured’ in nature.Ĭategories of Investors – The company has decided to categorise investors in the following four categories:Ĭategory I – Institutional Investors – 10% of the issue is reserved i.e. Both CRISIL and ICRA have rated the issue as ‘AA’ with a ‘Stable’ outlook. In case of physical applications, you need to sign on the application form as per your bank records for ASBA.Ĭredit Rating & Nature of NCDs – CRISIL and ICRA have been appointed as the credit rating agencies for this issue. Like equity IPOs, SEBI made ASBA mandatory to apply for these debt issues also effective October 1, 2018. Monthly interest payment option is available only for 60 months period and coupon rates for the same would be 8.65% p.a., interest payable on a monthly basis.ĭemat & ASBA Mandatory – Investors will not have the option to apply for these NCDs in physical or certificate form as demat account is mandatory to invest in these NCDs. These rates would be applicable for annual and cumulative interest payment options only. Interest Rate on Offer, Effective Yield & Tenor of the Issue – The issue will carry coupon rate of 9% p.a. The company plans to use the issue proceeds for the purpose of onward lending, financing, refinancing the existing indebtedness and other general corporate purposes. 900 crore, making the total issue size to be Rs. 100 crore, with an option to retain oversubscription of an additional Rs. Size & Objective of the Issue – Base size of the issue is Rs. Here are some of the salient features of the issue: The issue is rated “CRISIL AA/Stable” by CRISIL Limited and “ AA (stable)” by ICRA Limited. ![]() The company is offering interest rate in the range of 8.50% for 24 months and 9% for 60 months. 900 crore. The issue is scheduled to close on February 18. 100 crore and an additional green-shoe option of Rs. 1,000 crore from this issue, with base issue size of Rs. He can be reached at shiv Finance will be launching its public issue of non-convertible debentures (NCDs) from January 6, 2023.
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