10.15% Manappuram Finance NCD – Jan’19 – Should you Invest?
Manappuram Finance Limited has come out with latest NCD (non-convertible debentures) offering up to 10.15% interest rate. The issue opens on January 28 and closes on February 27 , 2019.
Manappuram Finance Ltd is one of the major non-banking financial company in the gold finance business situated in Thrissur, Kerala. It has over 3200+ branches across 25 states, a staff strength of over 15,000+ people. It provides loans against the pledge of household and/or used gold jewelry and provide short-term personal and business gold loan primarily to retail customers.
Manappuram Finance NCD – Significant Points:
Offer Period: January 28 to February 27, 2019
Annual Interest Rates for Retail Investors: 9.35% to 10.15% 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: CARE AA/Stable, Brickwork AA+/Stable
NCD Size: Rs 150 crore with option to retain over-subscription upto Rs 737 crore
Allotment: First Come First Serve
Listing: Bonds would be listed on BSE and will entail capital gains tax on exit through secondary market
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.
The present Tax Free Bonds are offering yields up to 6.5% in secondary market, which is better investment for People in highest tax bracket.
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.
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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.