10.25% JM Financial Credit Solutions Limited NCD – Nov/Dec’18 – Should you Invest?
JM Financial Credit Solutions Limited has come out with public issue of non-convertible debentures (NCD) offering up to 10.25% interest rate. The issue opens on November 20 and closes on December 20, 2018.
JM Financial Credit Solutions Limited, a venture between JM Financial Limited holding 50.01% and INH Mauritius holding 48.62% is a non-banking finance company with a focus on residential project financing such as funding real estate developers at various stages in the life cycle of a real estate project. The product portfolio consists of Project Finance, Loans against property, Loans against shares, Project at early stage loans and Loans against land.
JM Financial NCD – Significant Points:
Offer Period: November 20 to December 20, 2018
Annual Interest Rates for Retail Investors: 9.67% to 10.25% 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: “AA/Stable” by ICRA and India Ratings
NCD Size: Rs 250 crore with an option to retain over-subscription up to Rs 1,000 crore
Allotment: First Come First Serve
Listing: Bonds would be listed on BSE and will entail capital gains tax on exit through secondary market
For people in highest tax bracket Tax free bonds are trading at yields of 7% to 7.2% – which would turn out to be better and more secure investment. The problem is its not easy to buy due to very limited liquidity.
How to App
You can apply online by 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.
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.
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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.