{"id":10226,"date":"2019-02-13T10:10:41","date_gmt":"2019-02-13T04:40:41","guid":{"rendered":"https:\/\/www.apnaplan.com\/?p=10226"},"modified":"2019-03-27T08:24:17","modified_gmt":"2019-03-27T02:54:17","slug":"muthoot-finance-ncd-feb19","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/muthoot-finance-ncd-feb19\/","title":{"rendered":"10% Muthoot Finance NCD \u2013 Feb&#8217;19 \u2013 Should you Invest?"},"content":{"rendered":"\n<p>Muthoot Finance, the dominant player in Gold Loan Business has come out with public issue of non-convertible debentures (NCD) offering up to 10.00% interest rate. The issue\u00a0would open on February 14, 2019.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Muthoot Finance NCD \u2013 Significant Points:<\/h2>\n\n\n\n<ul><li><strong>Offer Period:<\/strong>\u00a0February 14 to March 14, 2019<\/li><li><strong>Annual Interest Rates<\/strong>\u00a0for Retail Investors: 9.25% to 10.00% depending on tenure<\/li><li><strong>Price of each bond:<\/strong>&nbsp;Rs 1,000<\/li><li><strong>Minimum Investment<\/strong>: 10 Bonds (Rs 10,000)<\/li><li><strong>Max Investment Limit<\/strong>&nbsp;for Retail Investor: Rs 10 Lakhs<\/li><li><strong>Credit Rating:&nbsp;<\/strong>\u2018AA (Stable)\u2019 by ICRA and \u2018AA\/Stable\u2019 by CRISIL<\/li><li><strong>NCD Size:<\/strong> Rs. 100 Crores with an option to Retain Over-subscription Up to Rs 650 crore<\/li><li><strong>Allotment<\/strong>: First Come First Serve<\/li><li><strong>Listing:<\/strong>&nbsp;Bonds would be listed on BSE and will entail capital gains tax on exit through secondary market<\/li><\/ul>\n\n\n\n<blockquote class=\"wp-block-quote\"><p><strong>Also Read<\/strong><em>&nbsp;\u2013&nbsp;<\/em><em><a href=\"http:\/\/www.apnaplan.com\/know-ncd-investment-tips-tds-and-taxation\/\">Know NCD \u2013 Investment Tips, TDS and Taxation<\/a><\/em><\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">Muthoot Finance&nbsp;NCD &#8211; Investment Options:<\/h2>\n\n\n\n<p>There are 9 options of investment in Muthoot Finance NCD.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"654\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-February-2019-\u2013-Investment-options-1024x654.png\" alt=\"Muthoot Finance NCD \u2013 February 2019 \u2013 Investment options\" class=\"wp-image-10228\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-February-2019-\u2013-Investment-options-1024x654.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-February-2019-\u2013-Investment-options-300x192.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-February-2019-\u2013-Investment-options-768x491.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-February-2019-\u2013-Investment-options.png 1196w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><strong>Muthoot Finance NCD \u2013 February 2019 \u2013 Investment options<\/strong><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Muthoot Finance&nbsp;NCD &#8211; Who can Apply?<\/h2>\n\n\n\n<p>This issue is open to all Indian residents, HUFs and Institutions.<\/p>\n\n\n\n<ol><li>Category I \u2013 Institutional Investors \u2013 20% of the issue is reserved<\/li><li>Category II \u2013 Non-Institutional Investors, Corporates \u2013 20% of the issue is reserved<\/li><li>Category III \u2013 High Networth Individuals (HNIs) \u2013 30% of the issue is reserved<\/li><li>Category IV \u2013 Retail Individual Investors \u2013 30% of the issue is reserved<\/li><\/ol>\n\n\n\n<p><em>High Networth Individuals are Investors\/HUFs applying for an amount aggregating to more than Rs 10 lakhs across all Series of&nbsp;NCDs<\/em><\/p>\n\n\n\n<p>However NRIs cannot apply for this NCD.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p><strong>Also Read:<\/strong>&nbsp;<a href=\"http:\/\/www.apnaplan.com\/tax-free-incomes-investments\/\">25 Tax Free Incomes &amp; Investments in India<\/a><\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">Why you should invest?<\/h2>\n\n\n\n<ol><li> AA Credit rating means very less likely hood of credit default <\/li><li>The NCD is secured, which means the above debt is backed by assets of the company<\/li><li>Largest Gold Loan player in India<\/li><li>The <a href=\"http:\/\/www.apnaplan.com\/highest-interest-rate-on-bank-fixed-deposits-fd\/\">interest rates are 2% higher than your regular Bank FDs<\/a><\/li><li>No TDS if invested in Demat Form<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">Why you should not invest?<\/h2>\n\n\n\n<ol><li>There have been issues with some well rated companies like DHFL,  <br>IL&amp;FS where rating agencies suddenly downgrade the rating. This risk always existed but it has come to forefront in last few months <\/li><li>The fortune of Gold Loan companies are dependent on Gold Prices. Any negative correction to Gold prices can be bad for company<\/li><li>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.<\/li><li>The present <a href=\"http:\/\/www.apnaplan.com\/category\/fixed-income\/bonds\/tax-free-bond\/\">Tax Free Bonds<\/a> are offering yields up to 6.5% in secondary market, which is better investment for People in highest tax bracket.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\">How to Apply?<\/h2>\n\n\n\n<p>You can apply online by ASBA facility provided by banks. It\u2019s the easiest way to apply and also avoids a lot of hassle in terms of KYC and paper work.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p><strong>Learn:&nbsp;<\/strong><a href=\"http:\/\/www.apnaplan.com\/ipo-asba\/\">How to apply for NCD issues using ASBA?<\/a><\/p><\/blockquote>\n\n\n\n<p>In case you don&#8217;t want to do it online, you can download the application form from company site or Financial Institutions and submit to collection centers.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"539\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019.png\" alt=\"Muthoot Finance NCD \u2013 Feb 2019\" class=\"wp-image-10230\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019.png 1000w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019-300x162.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019-768x414.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption><strong>Muthoot Finance NCD \u2013 Feb 2019<\/strong><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Recommendation:<\/h2>\n\n\n\n<ol><li> My recommendation is to<strong> invest some part of your Fixed Income investment in this NCD Issue<\/strong><br><\/li><li>You should always <strong>have diversified portfolio<\/strong> be it fixed deposit, NCD or equity investment<br><\/li><li>Its good idea to <strong>remain invested till maturity<\/strong> because liquidity on exchanges are low and hence you would get lower than market value <\/li><li><em><strong>If you plan to invest in this issue, do it early as most NCD issues are over-subscribed before the end date.<\/strong><\/em><\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Muthoot Finance, the dominant player in Gold Loan Business has come out with public issue of non-convertible debentures (NCD) offering up to 10.00% interest rate. The issue\u00a0would open on February 14, 2019. Muthoot Finance NCD \u2013 Significant Points: Offer Period:\u00a0February 14 to March 14, 2019 Annual Interest Rates\u00a0for Retail Investors: 9.25% to 10.00% depending on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10230,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[31,30,194],"tags":[3825,2326,2327,3809],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019.png",1000,539,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019-300x162.png",300,162,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019-768x414.png",768,414,true],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019.png",1000,539,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019.png",1000,539,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019.png",1000,539,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2019\/02\/Muthoot-Finance-NCD-\u2013-Feb-2019.png",120,65,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"Muthoot Finance, the dominant player in Gold Loan Business has come out with public issue of non-convertible debentures (NCD) offering up to 10.00% interest rate. The issue\u00a0would open on February 14, 2019. Muthoot Finance NCD \u2013 Significant Points: Offer Period:\u00a0February 14 to March 14, 2019 Annual Interest Rates\u00a0for Retail Investors: 9.25% to 10.00% depending on&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/10226"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=10226"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/10226\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/10230"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=10226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=10226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=10226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}