10.60% ECL Finance Ltd NCD – December 2018 – Should you Invest?
ECL Finance Ltd. has come out with public issue of non-convertible debentures (NCD) offering up to 10.60% interest rate. The issue opens on December 13 and closes on January 11, 2019.
ECL Finance Ltd is a non-banking finance company, focused on offering a broad suite of secured corporate loan products, retail loan products which are customized to suit the needs of the corporate, SMEs and individuals.
ECL Finance NCD – Significant Points:
Offer Period: December 13 to January 11, 2018
Annual Interest Rates for Retail Investors: 9.95% to 10.60% depending on tenure
Price of each bond: Rs 1,000
Minimum Investment: 10 Bonds (Rs 10,000)
Max Investment Limit for Retail Investor: Rs 10 Lakhs
Credit Rating: “CRISIL AA/Stable” and “[ICRA]AA (stable)”
NCD Size: Rs 250 crore with option to retain over-subscription up to Rs 1,000 crore
NRIs are NOT eligible to apply to this NCD issue.
Allotment: First Come First Serve
Listing: Bonds would be listed on BSE and NSE and will entail capital gains tax on exit through secondary market
If you have Demat account apply through that or ASBA facility provided by banks. It’s the easiest way to apply and also avoids a lot of hassle in terms of KYC and paper work
In case you don’t want to do it online, you can download the application form from Financial Institutions and submit to collection centers.
Recommendation:
My recommendation is to invest some part of your Fixed Income investment in this NCD Issue
You should always have diversified portfolio be it fixed deposit, NCD or equity investment
Its good idea to remain invested till maturity because liquidity on exchanges is low and hence you would get lower than market value
If you plan to invest in this issue, do it early as most NCD issues are over-subscribed within few days of opening.
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Amit
Hi Readers! I am Amit, the mind behind Apnaplan.com
I am MBA from NITIE, Mumbai and BIT from Delhi University.
This blog is my online diary where I write about my tryst with my investment decisions. In the 400+ posts on this blog you will find articles on Personal Financial Planning, Investments, Retirement Planning, Insurance, Loans, Fixed Deposits, Provident Funds, Stock Markets, Gold, Silver, Real Estate Investment, Credit Cards, Credit Score, Taxation, Inheritance Planning and Reviews on various Financial Products.