11% Indiabulls Consumer Finance NCD – Feb’19 – Should you Invest?
Indiabulls Consumer Finance Limited has come out with latest NCD (non-convertible debentures) offering up to 11% interest rate. The issue opens on February 4 and closes on March 4 , 2019.
Indiabulls Consumer Finance Limited (IBCFL),formerly IVL Finance Limited is a non-deposit taking NBFC registered with the Reserve Bank of India and is a 100% subsidiary of Indiabulls Ventures Limited.
IIFL Home Loan, the Housing Finance company from IIFL Group has come out with IIFL…
Why you should not invest?
There have been issues with some well rated companies like DHFL, IL&FS where rating agencies suddenly downgrade the rating. This risk always existed but it has come to forefront in last few months
There are NCDs available in secondary market which have higher yields with similar rating. The problem is low liquidity and hence is difficult to buy in large numbers.
In case you don’t want to do it online, you can download the application form from company site or 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 are low and hence you would get lower than market value
If you plan to invest in this issue, do it early as most good NCD issues are over-subscribed before the end date.
No related posts.
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.
I have two similar Questions.
1. What is about the Quality of various NCDs (Non-Convertible Debentures) of SERI Group (SREI INFRA & SREI EQUIPMENT FINANCE)? Why the Price for some of these 10 Yrs NCDs are falling like anything? Face Value of Rs. 1,000/- NCDs are selling at Rs. 820 / Rs. 800 or even lower. Is it advisable to buy 10 Yrs Maturity (say Maturity Date is in 2027 or 2028) NCDs of SERI Group or chances of Default is High?
2. What about various NCDs (Non-Convertible Debentures) of DHFL? Is it advisable to buy 10 Yrs Maturity (say Maturity Date is in 2028) NCDs of DHFL or chances of Default is Very High?
Hello,
Thank you for sharing this information.
Can NRI invest in this?
View Comments
I am planning to invest in NCD.
I have two similar Questions.
1. What is about the Quality of various NCDs (Non-Convertible Debentures) of SERI Group (SREI INFRA & SREI EQUIPMENT FINANCE)? Why the Price for some of these 10 Yrs NCDs are falling like anything? Face Value of Rs. 1,000/- NCDs are selling at Rs. 820 / Rs. 800 or even lower. Is it advisable to buy 10 Yrs Maturity (say Maturity Date is in 2027 or 2028) NCDs of SERI Group or chances of Default is High?
2. What about various NCDs (Non-Convertible Debentures) of DHFL? Is it advisable to buy 10 Yrs Maturity (say Maturity Date is in 2028) NCDs of DHFL or chances of Default is Very High?
Hello,
Thank you for sharing this information.
Can NRI invest in this?